The Credit report is certificate about how you manage your DEBT.
Bankers or Lenders willing to lend you the money depend on the report.
1. Pay your bills on time
Credit bureau track money that you have borrowed and track your monthly pay the bill. monthly payment will recorded on report and it will show the lenders how you make monthly payment on time or not.
Manage your bills:
OR pay immediately when you receive bills
OR pay bills in 2 times a month beginning and mid of the month.
Or setup bill payments automatic transactions by Pre-authorized debits (PADs).
When You’re Short on Cash, you make minimum payment on time every month (you’re only paying the interest)
2. Pay down your credit card balances ( 30% rule of credit limit)
Never max out your credit cards, keep balance below 30% of credit limit because this is safe point and your finance situation is under control and strong enough.
Pay more and pay off to the credit card with high interest rate first and pay at least minimum monthly payment for the other.
Moving your balances from high rate credit card to a low rate credit card.
3. NEVER close oldest credit cards account
credit cards can lower your credit score because it makes your Length of Credit shorter and Credit bureau will remove history of the credit card which you cancelling.
Make sure your length of credit is longest, Do not close oldest credit card account. The oldest credit card is longest one you have.
Your first credit card is the best one and NEVER close this one whatever high interest or low limit.
4. Apply Small Loans
You can apply small loan and take out money for just about anything: used car, vacation, appliance, even a personal loan. Small loans are one type of installment loan as installment credit since you pay back with the interest in set monthly payment. Loans help you build credit by build up your history (35% FICO ).
“ Buy today and do not pay until 6 months or 1 year. ” this is good finance offer but whatever you should start to make monthly payment and it will appear on your credit report. Or other lenders can see you have problem with finance because you did not make any payment long time by on your credit report, It can harm your credit score.
Unsecured line of credit is the best choice and easy to access.