Last Updated on Apr 3, 2020 by James W


It will be very hard to get any further loan if you have a bad credit score. Be it a mortgage or a car loan, student or a personal loan you must have a good credit score to avail all or any one of these. Luckily there are some very easy but useful steps with which you can improve your credit rating. Managing your missed payments is very important when you decide to pay off your old debt. You may also pay it off by paying extra money but those old missed payments reflect very poorly in your credit score which you must mend to have better chances in availing a loan.

Credit Rating Is Not Fixed

Credit rating is not fixed over time and is something which changes regularly as per the information that are updated and furnished by various creditors. When you miss any payment with any creditor it reflects in your credit score for a maximum of seven years. You can only get a chance of removal of it from your credit score if you have a good repayment schedule and goodwill. Therefore, it is highly important that you do not miss any payment, make them all in time to have an enviable credit score.

Managing Your Accounts

Managing your accounts well is also equally important to improve your credit score dramatically. You must know that all credits are not created equally and therefore, when you decide to cancel some of the credit cards that you have it is better that you retain the old credit cards with you. It is due to the simple reason that old credit cards will show more consistency and responsibility from your part. You have to use your old cards, albeit wisely, by making small but consistent purchases to make you look trustworthy and not open too many lines of credit as it would make you look erratic and not consistent.

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Variety And Big Debt

Having only credit cards debt is not good for your credit rating. If you have a variety of debt like credit cards, car loan, mortgage loan is helpful if you pay them properly in time showing that you are efficient enough to handle multiple debts. Also keep in mind never have a high balance against your name even if you do pay it off on time because if any high balance is reflected in your credit score, it affects adversely. Therefore, settle it every month and make weekly payments so that the balance does not accumulate at the end of the month.

Talk To Creditors

Talking to creditors is very beneficial apart from having a secured credit card, which is more like a debit card, and a proper budget to create funds to make payments regularly. It will help you to remove any missed payments from the credit report, reduce the monthly payments and make it easier for you to manage your debt. Creditors often opt for smaller payments than letting you fall into bankruptcy and lose the whole payment due. Above all, be patient and consistent to improve your credit score. You can click here to know more ways to improve your score.


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