3 Ways to Improve your Credit Rating

The consequences of having a low credit score are well-known these days. Most people regardless of whether they are in serious debt or not find themselves in a position where they want to improve their credit score.

Now the reasons why you might want to improve your credit rating can be several yet there’s no doubt that you can make an improvement even if it takes a while. So here are three ways by which you can improve your credit rating:

#1: Find out your current FICO score

Before you set a target for improving your credit score, it’s important to know where you stand first. For this, request a credit report from each of the credit bureaus – Equifax, Experian and TransUnion. Once you do this, you can then decide what steps you will need to take in order to improve your credit score.

#2: Look for errors on your credit report

There have been instances when people have seen errors on their credit report. So look a little closer at your report to check for any mistakes just in case you didn’t make any new enquiries or requests for new accounts.

#3: Pay your bills on time, every time

Almost everyone who has a good credit score will tell you that this habit is mandatory. Chances are that if you’ve been doing this for some time now, your credit score would be good enough to get the lowest interest rates. When it comes to credit cards, try as much as possible to reduce the balance on your cards and most of all, don’t max out your credit cards.