Ways to improve your credit history

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Research » Guides » Building Credit History » Ways to improve your credit history

Ways to improve your credit history


Updated: December 26, 2012

The content is accurate at the time of publication and is subject to change.

Banks uses your borrowing and repayment history to decide how credit worthy you are. If you ruined your credit history by splurging on credit cards, your low credit score will ensure no more loans. A good credit history will make your next application for credit go smoother at a better rate of interest.

Tips on improving a credit history to high credit score.

Manage your credit accounts responsibly. Maxed out credit cards reduces credit scores. Bring them below the credit limit and pay remaining balances. Do not open unnecessary credit accounts to increase available cash. Borrow less and pay on time. If you are new to managing credit, do not open a lot of accounts in a short time, as this will decrease your credit score.

Pay on time to erase bad credit history, continue paying your bills on time, for as long as possible. Use technology to automate bill payment process and eliminate missing out important dates.

Keep track of credit report. Follow your credit reports regularly. A credit report can be obtained with a request to the credit bureaus. Do not forget to highlight and dispute any mistakes in the credit report, as these are an indication of your credibility.

Learn to manage your finances. Take financial classes, if necessary to reign in money management techniques. Pay outstanding balances and reduce your debts. It is more useful to reduce the amount you owe, rather than consolidating it in lesser number of accounts. Purchase items of necessity on a priority when you don’t have enough to make ends meet.

Look for fixed interest rates to pay off loans. Search for options that can refinance existing loan on a lower rate of interest or on fixed interest.

Hold on to old credit cards and old credit accounts. Closing an inactive credit account and credit card will serve to reduce your credit score. So take them out and use them at least once a month. Closing an inactive account will still show in your credit report.

Reduce your credit shopping time. When you require credit to meet your needs, complete shopping for it in less than a month’s time. When you apply for credit, to determine your credit worthiness, companies enquire from other credit rating agencies. If you have asked for credit from too many of them (even if you were trying to search for the best one) for too long, your credit score will drop!

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

Autumn 2018: Best Rewards Credit Cards for Thanksgiving Shopping

Autumn 2018: Best Rewards Credit Cards for Thanksgiving Shopping

Posted: November 8, 2018

Thanksgiving is coming, and whether you are hosting a meal or coming as a guest, your spendings are going to accumulate faster than you can notice. A holiday feast is a costly matter – each year Americans spend around $50 on a Thanksgiving ... Continue reading
The Best Credit Card for Earning Cash: Discover it® Cash Back

The Best Credit Card for Earning Cash: Discover it® Cash Back

Posted: November 2, 2018

You’ll have hundreds of dollars in your pocket in no time because you’ll earn money back on every purchase you make with this card. There are no restrictions on the amount of cash back you can get, and Discover even matches every penny you ... Continue reading
Top 5 Cards for Travel from Our Partners: Autumn 2018 – Expert’s Choice

Top 5 Cards for Travel from Our Partners: Autumn 2018 – Expert’s Choice

Posted: October 10, 2018

Nights are drawing out, the wind is colder every day and you already feel the lightest breath of winter on your face - autumn is here. Holidays are over, kids are back to school and all you are left with are hefty holiday bills that you ... Continue reading
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!