Thursday, 6 September 2012

Time to Check your Credit Report and Improve Credit Score

Whether you are planning to buy a home, a car or even a new credit card, your credit score has immense affect on your loan processing. A credit score is a 3 digit number that shows numeric summery of your credit health. Such score is derived by credit bureaus by analyzing your credit history. The score usually ranges from 300 to 900 points and the higher score suggests more chance of getting approval of your loans. If you are in dilemma to find how to improve credit score, following tips may help you:

ñ      The first and foremost easy action to improve your credit score is to pay your bills on time and pay regular installments on your loan default. Even, if your credit score is trembling, you just follow the technique of paying all the bills on time. You need to maintain no late payment status for at-least seven years.

ñ      It is important to put a limit on your credit card use and utilize it only for certain ways. Your credit score would be on the higher side if you will make less use of credit cards as well as will avoid using too many credit cards. The ideal would to be use between 10% and 20% or less of the total credit available.

If you don’t have any idea how to get credit report and improve your credit score, it is better to take help of professional credit rating agencies. These agencies become your friend and guide in showing you the right way to improve your credit score.

Wednesday, 5 September 2012

How to Improve Credit Score?

Getting a loan is usually a daunting task. Many times, it is even more cumbersome than the payment of the loan. Apart from complex legal formalities, there are many things that hamper the process of your loan approval and low credit score is most common among all of them. If your credit scores are becoming stumbling block in your loan approval process, here are few quick tips to improve credit score.

ñ      Having a credit card can actually help you to be eligible applicant for loan. If you can't qualify for a regular credit card, you can buy secure credit card with which you get credit lines equal to your deposits. It is advisable to buy a card that is reported to all significant credit bureaus.

ñ      Make sure to pay your EMIs on time. If you are responsible and punctual with relevance to your current loan payments, it will surely improve your credit score.

ñ      It is important to pay down your credit cards and avoid credit card default to increase your credit scores. Generally, you should try to make the balance of each of your credit card at least 30% below the credit limit. It is advisable to give preference to paying down the credit cards close to their credit limit at first.

You should pay your utility bills on time. Though utility bills are not reported in your CIBIL report, but many private utility service providers may report late payments to credit reporting agencies which affect your credit score.