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Research: Steps to take in order to improve your credit history -

A bad credit history can be counterproductive for a number of reasons. You need to take steps to improve your credit history as fast as possible failing to do so will only cause a lot financial setbacks.

A credit history is something that is maintained by the three credit bureaus for each and every citizen in this country who has a social security number. However, you can start building on your credit history only when you open a credit account. You can do so by getting a loan, a new credit card or doing anything else that involves borrowing money from a legitimate source and returning it in due course of time as agreed up on in advance. Having no credit history is just as bad as having a bad credit history. Whatever the case may be you need to start solving the problem as fast as possible.

The first thing you need to do is to check your credit report in order to find out if there are any discrepancies. Every individual with a credit history is eligible for one free credit report every year. You can get such a report by going to one of the credit bureaus. Once you get the report, check all the entries to find which ones are causing the problem at hand. Only when you find out what went wrong, you can actually fix the issues. Things like late payments, missed payments, defaults or bankruptcy can badly affect your credit report. Even if these entries are mistakes due to negligence or fault, you need to file a complaint to get it rectified.

The next thing to do is to make a list of the amount of credit cards that you have applied for. If you apply for too many credit cards, you will find that it will adversely affect your credit history. Opening one or two credit accounts and using it regularly is the best way to keep a good credit score. Whenever you apply for a new credit account, the bank will request your credit score from the crediting bureaus, and your credit score will get lower when this happens. If you happen to be rejected, it is going to be even worse for your case. The best thing to do is to use an old card without going after rewards all the time. However, not using credit at all is also not a good thing to do, as it will not in any way help your credit score.

The last thing to do is to see if you are using balance transfers regularly. A balance transfer is good in order to get rid of immediate debt concerns. However, its initial effect will be to reduce your credit score. In the long term, if you plan out your moves you can ensure that it will actually work in your favor. Debt consolidation loans are another thing that can affect your credit history. The fact is that your credit limit will be reduced and this will in turn lower your credit rating. You must ensure that your outstanding balances are low on many cards rather than to have one large balance on a single card.