Advice on How to Improve Your Credit Score
With the economy not being as good as it used to be a few years ago, just about everyone is looking for a way to improve their credit history. Now, while that might sound simple on paper, getting rid of a bad credit record is something far more complicated and can harm your reputation gravely. Considering that, here are some tips on how to improve your credit record.
1. Borrow Some Money
While at first this might sound counterproductive, your credit score is there not only to get worse every time you fail to repay a debt, but also to get better every time you do. Thus, if it is possible for you to get a personal loan that you know you can repay even in advance, then do so. This will improve greatly your credit record, all while you procure funds for something that you might be wanting/needing.
2. Pay Your Outstanding Debts
As mentioned above, perhaps the most important part of repairing your credit record is to repay your debt on time. So if you happen to have some pending debts, even if they are long due and you believe there is no hope for you to repay them, sit down and work with your creditors to get out of that trouble. Not only will they appreciate your interest and good intentions, you will also improve your credit score little by little and you reputation will suffer less.
3. Don’t Rent
If you want the ability to negotiate and get great deals on purchases, you will need a great credit record, and unfortunately you will not be able to get one if you rent. The reason for this is that when you rent, the message that companies get is that you are not committed to big purchases or other types of long term commitments. In fact, while it may sound contradictory, the only way to raise your credit record is to have some sort of debt in the form of personal loans, car payments or mortgages.
4. Ask a Favor from Your Utility Companies
This one is a not-so-known trick that can go a long way into imporving your credit record. Most utility companies request a small deposit from all new customers. In your case, give it without hesitation, but then each month call them to ask them to report your on time payments to the credit bureaus.
That’s it. You should always consider all factors when it comes to your financial records. Starting from repaying your debts and followed by being punctual on any other payments you have.