In the first part of the article series, we all understood how FICO score can be calculated. We also saw the particular course of action to rectify an error. Today, we will discuss ways in which we can transform your credit score. Ways which will turn your bad credit into pristine credit.
Improve Your Score with These Tips
It’s not your destiny to suffer from high interest rates for the rest of your life. Your score is only a snap shot of your present financial strength. You can always work on it plus improve.
Juggling work and family is a tiring process. It is very difficult to keep up with all the obligations. So , set reminders via email or SMS. Several banks provide payment reminders also. You can make utilization of them. Another way is to pay immediately through your bank account. This will save your period and make sure that your payment is usually never delayed.
PAY BILLS ON TIME
Late payment is considered a sin along the way of improving your credit score. But , it is definitely hard to keep up with them. So , here is a tip for you.
I perfectly understand that making all the payments is very difficult in this economy. So , you are able to go for Preferential Payment.
Pay for just those bills which are reported towards the credit bureau. There are few expenses which can be paid later. You will certainly be penalized for late transaction but it will have less impact on your credit report.
Such bills include:
> > Utility bills like Cable, electrical power, water, cell phone
> > Medical Bills
> > Payday loans
This tip is useful when you are totally tied up and cannot pay. This doesn’t mean you should stop having to pay the bills.
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If you do so , you can find chances of the collection agency getting active. This is bad for your credit report.
INADEQUATE CREDIT FILE/HISTORY
Having an inadequate credit rating will definitely have a negative impact on to your credit rating. If you have a good credit history, anyone will offer you a loan. But if you don’t have any background, how will the lender determine your credit worthiness?
Therefore , if you have any creditors who never report your credit history to the bureau, ask them to do so every month.
This will gradually help you develop a credit history.
KEEP YOUR ACCOUNTS “CURRENT”
Keeping up with payments is almost impossible today. So what you can do is call creditors and ask them to keep your accounts “current”. Negotiate lower monthly payments and make sure you pay it regularly.