The Truth about Improving Your Credit Score
Maintaining an enjoyable quality of life these days, from a financial standpoint at least, has become largely dependent upon your credit score. Most people want things that they are unable to pay cash for outright such as a car or a home. This makes it necessary to be able to make payments over time which in turn makes a good credit rating essential. Many people suffer from bad credit and are of the misunderstanding that it takes tremendous effort and economic exertion to improve their rating. But the truth is that credit improvement is really a lot easier than you probably think. So here are some facts about what makes for a better credit score.
Older Is Better – Believe it or not, a significant percentage of your credit score is determined by how old your credit history is. The more years you have under your credit belt the less of a risk you appear to be to creditors. Negative marks on your credit can be at least somewhat neutralized if that portfolio is older rather than newer. Keep in mind also that negative marks come off your report after seven years.
New Credit Isn’t Necessarily The Answer – Try to keep away from looking for new avenues of credit unless it is absolutely necessary. Every time you apply for credit in any form, the creditor looks into your credit history and that inquiry goes onto your report which could affect you negatively.
Autopay Is Your Friend – Setting up automatic payment plans through your bank for your bills is one of the smartest things you can do to make on-time payments and improve your credit rating. Over one-third of your credit score is based on your ability to make payments on time so use this feature at your bank to your advantage.
For more information from the Huffington Post, click here.
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