Wednesday, 30 September 2015

How to boost your credit score

Looking at ways to boost your credit score? Let us go through a checklist of items that would help, if not immediately, over a period of time.
Check your credit report – The first step towards bettering your score is to obtain your credit report and understand it. Go through it at length, and ascertain the areas that are pulling your score down. These could be myriad issues: late payments, delinquencies, or collections. An incorrect entry can also hamper your score, so ensure that the report is updated with accurate information.

Dispute errors – Raise a request with the concerned lender to have the discrepancy rectified. Again, check your report to ensure that it is updated with the revised information.
Use card limits well – Remember, not more than 30% is a good rule of thumb, when it comes to utilising your credit card limit. Hitting the limit assigned to you every month can negatively impact your score.
Healthy credit mix – Ensure your credit history has a good ratio of both secured (home or auto loans) and unsecured (such as personal loans or credit cards) loans. This can help impact your score positively.
Retain old ‘good’ debt – Have a home loan with impeccable payment records? Do not foreclose the loan; having a clean credit history can boost your score significantly.
Pay bills on time – Delinquent payments on card bills can be detrimental to your score. Even if it is a small amount that you can pay off, do so. It is always wise to minimise outstanding debt, and to make timely related payments.
Credit counselling – If the task of boosting your credit score is seemingly impossible, or you are unsure where to begin, there is help at hand. Professionally trained counsellors can be consulted to work closely with you, to rebuild or boost your credit score.
Ultimately, keep in mind that there is no quick-fix or ‘instant’ solution to boosting your credit score. However, with time and patience, it can indeed be achieved.

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