How To Improve Your Credit Card Ratings – Before we go into seeing how your credit card ratings can be improved, the need to check your card ratings constantly. Knowing your credit card rating is quite important as it can affect your ability to borrow money or access products such as credit cards, or loans. You can check your score for free and if it isn’t in the best shape, there are things you can do to improve it.
Most people are so carefree to check their credit card until it is too late and they find themselves complaining. That is when your ability to borrow will be affected. This means you may not be able to get a mortgage if you want to buy a home, or a credit card, as lenders will consider you too high risk. So it is a win-win situation for you to How To Improve Your Credit Card Ratings. Let’s show you how you can do that.
How To Improve Your Credit Card Ratings In 6 Ways
There are lots of ways in which credit card score can be improved. Here are some of the ways.
Check the Electoral Roll
If your name’s not on there, you’ll find it much harder to get credit. It might seem odd, but even something as simple as not being on the electoral register can have a negative impact on yours credit core. Get in touch with your local council and make sure you’re on the electoral roll. If you aren’t, you can register securely online.
Adopt A Credit Card Builder Method
There are several credit cards available for bad credit which are specifically designed to help you rebuild your credit score, known as credit builder cards. You’ll usually be offered a low credit limit initially, with the potential for this to increase if you prove you can manage your card responsibly.
Early Bills Payment
This should be common sense. Paying late can really harm your credit score, whereas showing that you always make your debt repayments on time can boost your rating. If you’re worried about forgetting payment deadlines, set up a direct debit so that payments are taken automatically from your account each month, giving you peace of mind that you’ll never miss one. Make sure you always stay within any credit limit too, as exceeding it can also harm your score.
Close All Unused Credit Cards
Having lots of different credit accounts open can indicate to lenders that you’re not in control of your debts, so make sure you close any accounts which you don’t use any more and cut up any cards that you no longer need.
Reduce Your Debts
This is easier said than done. But, reducing the amount that you owe is going to be a far more satisfying achievement than improving your credit score. The first thing you need to do is stop using your credit cards. Use your credit report to make a list of all of your accounts and then go online or check recent statements to determine how much you owe on each account and what interest rate they are charging you. Come up with a payment plan that puts most of your available budget for debt payments towards the highest interest cards first, while maintaining minimum payments on your other accounts.
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Check Who You Are Linked With
Finally, on the How To Improve Your Credit Card Ratings In 6 Ways, Check if you are linked to another person: as having a spouse, friend or family member’s credit rating linked to yours through a joint account, could affect your personal rating if they have a poor score.
You can improve and increase your credit card score if you adopt these ideas listed here.