What is the best way for me to build my credit rating?

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Aug

What is the best way for me to build my credit rating?

If you wonder how to go about raising your credit score, the good news is that it’s not as difficult as you might think. Credit score rating is based on many factors, which means there are many ways to raise your rating. An improving credit score is a good sign to lenders, because it indicates that you are concerned about improving your credit rating and therefore are more likely to pay your bills to them on time.

How to raise your credit score: Pay at least the minimum, and pay it on time! There is nothing more important than this. The biggest factor in your credit score rating is your payment timeliness, so do whatever it takes to get that payment to the credit card company before the cut-off date. Get a free credit report and note your score. Make several months of on-time payments that are at least the minimum amount - more, if possible - then request another credit report. You should see an improving credit score and improving credit rating.

An improving credit rating can also be achieved by reducing the number of outstanding debts; if you have several this is a very good idea. Is there a small balance you can pay off? Concentrate your efforts on that, and you’ll soon have an improving credit score.

And while your credit score rating isn’t dependant upon your interest rate, the higher your rate, the less the amount of each payment goes towards reducing the balance. Call your lenders after several months of good payment, and ask about reducing the rate.

The question about how to raise your credit score can be answered in several ways. Choose the method that works best for you, and start enjoying an improving credit score.