Improve and Boost your credit score

Having a high credit score is not something you should do just to get bragging rights. That is not the only advantage or benefit involved. A high credit rating has many other advantages. You can save money by improving your score. If you raise your credit score, you will automatically enjoy a huge increase in your overall financial stability.

Going in for credit repair will result in an improvement in your financial position. You will have more cash in your hand. Interest rate charged on the loans will be lower. You will become a low risk customer and lenders will be prepared to offer generous discounts. You need not pay high down payment when you go in for a secured loan. All this will help you save money in the long run.

Once you have extra cash in your hand, you can repay loans faster. Soon, you will end up in a situation where you will borrow money not because you need it but because you just wish to do so.

If you want to raise credit score and achieve this goal, you will have to focus and come up with a clear and specific plan. Simply implementing ad hoc measures and solutions is not going to work. You need a plan and goal oriented & specific approach towards credit repair.

You should aim to improve your score to 750 by the end of this year. It is not going to be easy. Yet, having such a goal and reaching 650 will be a big achievement. On the other hand, if you operate on the basis of vague goals like
- good credit score
- high credit score
- improved credit score
you will lose motivation and will be forced to live with a poor score.

Another advantage of improving your bad credit score is that you will have many more financial options in your hand. When you have a poor score, nobody will be interested in helping you out. Just stick to your plan and you will find your score rising in a steady manner. Your plan should cover
- removal of errors
- repayment of debts
- reduction of amount of interest and
- reduction of instances of delayed repayments.

You should either employ an expert to take care of this task or you should carry out these tasks on your own. The former option is preferable because you will get useful tips and hints that you otherwise will not enjoy.

The process to improve bad credit can be time consuming. If you are working within a certain time frame and need a faster process, options are available. Reading through your credit report and eliminating the negative marks, through disputation, can erase bad credit.

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How to improve your credit score

You might be tempted to pull out the scissors and slice up your plastic. But there are better ways.

First, know that closing a line of credit before paying it off will lower your credit score. Fair or not, it sends a signal to potential lenders that you had some financial problems and felt obliged to shutter your account. Closing too many credit cards at once can temporarily ding your score by increasing your debt-to-credit ratio. Craig Watts, spokesman for MyFico.com, says your score will recover in a couple of months. To close a card, start with newer cards first. If the card is older, keep it open. Keeping cards that you do not use helps lengthen your credit history, which counts in your favor.

Besides, as Gail Cunningham, spokeswoman for the National Foundation for Credit Counseling (NFCC), warns, “We’re living in an economic environment where cash is king. Treat credit responsibly. New credit is extremely hard to get.”

Of course, the most obvious way to improve your credit score is to pay your bills on time and stay under your credit limit.

Lenders also like to see consumers using no more than 30 percent of their credit lines. That’s known as your credit utilization ratio. So if you have a card with a limit of $1,000, ideally you’ll owe no more than $300 on it.

There is still a risk that your credit-card company might lower your limit to $400, making your credit utilization ratio less attractive than it had been and hurting your score. But you would still owe a relatively modest amount and so would probably be considered less of a risk to anyone making up their mind about whether to approve you for a loan to buy a new house or car.

If you’re considering hiring a credit-repair company, don’t. As a general rule, those companies, especially ones that charge a fee up front and promise results, should be considered potential rip-offs—they can’t possibly know that they will be able to deliver a positive outcome for you. Besides that, they won’t do anything for you that you can’t generally do on your own. Dealing with debt-settlement companies is an even riskier gamble.

 

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