Finance Metric - How to improve your credit rating

How to improve your credit rating

Maintain a good payment record - Pay your bills on time, this is very important. A lot of late payments can lower a credit history record.
Control of debt - Lenders want to see that you are not living beyond your means. Experts estimate that non-mortgage credit payments each month should not exceed more than 15 percent of your after tax income.
Signs of responsibility and stability - Lenders perceive things such as longevity in your home and job (at least two years) as signs of stability. Having a respected profession can improve a credit rating
Credit inquiries – Keeping credit enquiries to a minimum can help your credit rating as whenever you apply for a credit card, the lender accesses your credit rating from a credit rating agency as part of the approval process. When your credit rating is accessed, a note is made of this access on the record for two years. Credit companies perceive many inquiries on your report as a signal that you are looking for loans and will possibly consider you a poor credit risk. To keep your credit rating good, try not to let companies access your history unnecessarily.
Keep cards you don't use - Although it is believed that having too many credit cards can have an adverse affect on your credit score, closing lines of credit can not improve your score and may even hurt it. The credit rating formula looks at the difference between the amount of credit you have and the amount you're using, so reducing your total credit can make the balance you carry seem larger and take points off your score.

Related Readings
Credit Establishment 101

There will come a day when you need credit. You may want to buy a home or a car and your credit rating will become very important to help make these dreams come true. One of the first things you will need to learn is the basic principle of money management, especially the ability to repay your creditors on time within the 30-day grace period they establish for you.

Credit Repair Fraud

Many companies offer fraudulent schemes for personal credit repair, offering to wipe out legitimate records and give a person a "clean slate". In many cases, these are either fraudulent scams or schemes which may cause a person attempting to use them to violate more serious laws. It is very important to note that this is not only the case

Credit History / Credit Report

Credit history or credit report is a record of an individual's or company's past borrowing and repaying, including information about late payments and bankruptcy.

How to improve your credit rating

Maintain a good payment record - Pay your bills on time, this is very important. A lot of late payments can lower a credit history record.

Identity Theft

Identity theft (or identity fraud) is the deliberate assumption of another person's identity, usually to gain access to their finances or frame them for a crime.

Preventing Identity Theft

Preventing identity theft is never foolproof but use these tips and you'll have a much better chance at preventing identity theft before it happens.

Watch Out For Credit Repairs

It is very easy to find a site that is neat, professional-looking, and one that offers a free three-agency credit report and free credit report without a credit card.