Improving your credit rating doesn’t demand that you increase your wealth, but it does require you to stay on your creditors’ good side. So, even without big – or any – changes in your finances, there are several ways you can improve your credit rating.
Timely payments: people who are sloppy with their credit card payments are painting themselves in a negative light. Always pay your bills on time if you want to keep a perfect credit score.
Keeping all your credit cards is better – but this doesn’t mean you need to use them! What we’re saying is that you should take the credit cards you don’t need, lock them up in some old drawer and keep their accounts open. This way, you will maintain long-term history with your creditors – something that will effortlessly increase your credit rating.
Keep an eye on your credit reports – make sure to carefully read through them and immediately correct all possible inaccuracies and outdated information. A simple dispute should take care of these corrections within a month.
Talk to your creditors – when in a difficult financial situation, don’t hide under the rock. Instead of quietly delaying your payments and waiting for some solution to come by, openly communicate with your creditors and see if you can make an arrangement that will suit you both. A negotiation is a wise choice that could benefit you if done in the right situation and with the right approach.
Finally, avoid bankruptcy – this is the black spot that takes the longest time to wash off from your credit reports. Before you get stuck in a ten-year period of having your credit score lowered by a bankruptcy, try to find any alternatives that might help you salvage your financial situation.