A credit score is one of the most important numbers related to your life. It will determine how much you have to pay to obtain and use credit. It can effect if you can obtain a job in some instances and how much you will pay for insurance for your home. However, in order to improve your credit score, you must use credit. It can seem impossible to get yourself ahead. There is hope though.
Boosting My Credit
Many individuals want to know how to improve their credit so that they can qualify for lower interest rate credit cards. However, if you already have poor credit, getting to the point of good credit scores will take time and a lot of work. A few things you can do to increase your chance of accomplishing this, though follow.
- How can I lower my interest rate? You should ask that question to your lender. Contact the lender directly and request a reduction in your rate. In many cases, they will lower it especially if you are making payments on time and proving yourself a good credit risk.
- Obtain new credit cards. The best credit cards for bad credit may be secured credit cards or those meant for individuals with bad credit. Use these very lightly and pay them off each month in full. By obtaining new lines of credit and rebuilding your credit score, your credit score will improve.
- A credit score changes often, but it is dependent on your current credit report. If you have not done so, get a copy of your credit score. Then, remove any old or inaccurate information from the account. This could boost your credit score.
Having a bad credit score is not the end of the line. The fact is, you can work to improve your credit score over time. To do so, make payments on time to each of your lenders. Keep the amount of debt as low as possible. Avoid maxing out credit lines or applying for new lines of credit too frequently. Do use various types of credit too, including secured credit line car loans, mortgages, and unsecured credit such as credit cards.
To get good credit scores, you have to work for it. However, do not assume you have to hold on to that credit card with the high APR. Ask for a reduction or work on improving your credit enough that you can apply for a new card with a lower rate. Many companies specialize in these higher risk cards and while the interest rate may be higher right now, it will be lower if you work to reduce your risk factors.
