Your credit score rating is the number that rates your ability to deal with debt. Regular payments leading to an item being paid off contributes positively to your credit score rating. Late payments and debts that have been ignored contribute negatively to your credit score rating pulling it down.
The higher your credit score rating, the lower your interest rates will be when your loan is approved. This can save you potentially thousands of dollars, so it is worth your while to pay attention to your credit score rating and try and boost your score overall.
You can find our what your credit score rating is when you get your free credit report. There are three nationwide companies that are responsible for free credit reporting. They compile information about you that you can access for free once a year. Free credit reporting ensures that you are able to access your details and make sure that they are correct.
By getting rid of old debts, you will boost your credit rating score higher. If you haven’t had much debt before it is a good idea to buy something on hire purchase, something that is very easy for you to pay back. If you do this, instead of buying it outright, you are creating a positive credit history, and displaying that you have the ability to pay something back by the due date.
Regularly paying off your credit card is also a good way of displaying fiscal responsibility. Make sure that your credit card limit is recorded correctly. If the limit is recorded at $2,000, but is really $20,000, then you need to correct this. Why? Because if your balance is at $1,500, and you keep it there, it looks as though you are constantly maxing out your card. If the balance is at $1,500, and the limit is at $20,000, it looks much better on paper.
Your credit score rating is being used with greater regularity as a way of deciding with sort of premiums you will pay when you get insurance. Being responsible, and being aware of your credit score rating are the first steps to improving your credit history to ensure smooth sailing with lending institutions in the future.