Tag Archive for Credit Score

Top Tips on How to Improve your Credit Rating

Credit score

In order to establish what your actual credit rating is, you may want to check your credit score online.  When you do this, you will also usually get information on what is affecting your score the most.  This will give you a better idea as to the changes you need to make to improve upon this.  Below we have highlighted some top tips on how to repair your credit rating.

Pay your Bills in a Timely Fashion

Credit score

It may seem obvious ? but to avoid the need for further credit repair ? you need to make sure you pay your bills on time.? This will be looked upon favourably, as it is an indicator that this is how you will make future payments.? Make sure you pay your bills by their due date.? This doesn?t include solely credit card bills ? but things like your mortgage, rent, utilities etc.? If need be, set up standing orders or direct debits to do this to make sure there is no room for human error.

Only Apply for New Credit Accounts When You Need them

Some people think that getting a credit mix and applying for new accounts will help their credit score ? however this is a myth, you are most likely better contacting a credit repair company like Go Clean Credit instead.? When you apply for unnecessary credit ? it sends off the wrong signals, and actually can make your debt worse if you are then tempted to overspend.? There is also the consideration that every time you apply for a new credit card, this will result in a ?hard inquiry?.? When there are too many of these ? it can negatively affect your score and will stay on your report for 2 years.

Check for Inaccuracies on your Report

There is always room for error.? As such, you should check your credit reports from more than one source to ensure that everything is as it should be.? If you do find inaccuracies ? this will end up pulling your credit score down through no fault of your own.? There are ways for you to get in touch with the bureaus and ask them to correct the error.? It always helps if you have supporting evidence.

Pay off Whatever Debt you Can

You should try to figure out what your credit utilization ratio is.? This is part of how your credit score calculations will be made.? If you go through all your credit card statements within the last year, total up the balances ? and then divide them by 12 ? this is your average credit use per month.? You should really be looking for something that is 30% or less. If you have a good credit rating, the likelihood is you will have a very low ratio.?

If you have a bad credit rating and are struggling to get out of it, hopefully these tips will help you on your way.  Allow for some time to get it sorted. 

5 Habits That Help You Maintain Your Good Credit Score

5 Habits That Help You Maintain Your Good Credit Score

5 Habits That Help You Maintain Your Good Credit ScoreYour credit score is one of the most important numbers in your life. A good credit score can set you up for favorable lending terms. But, a poor credit score may mean you have to pay high interest rates ? if you are able to get a loan at all.

While it might not be the most exciting topic to think about, paying close attention to the condition of your credit score is an important step toward a prosperous future.

To make sure you are managing your credit score properly, think about maintaining these five habits.

Use Your Credit

That?s right ? it is good for your credit score to actually use your credit. By using credit, and then paying it off in a timely manner, you will be proving that you are a worthy credit risk.

Having no credit is almost as bad as having poor credit, so make sure to actively use at least a couple credit accounts. Of course, it should go without saying that you need to use them responsibly to avoid getting into debt.

Keep Credit Lines Open

Even if you have paid off a credit account, and you have no intention of using it anytime soon, it still may be worth keeping it open.

One of the elements of your credit score is the length of your credit history, so you want to keep some older lines of credit open for the benefit of this metric. Also, part of your credit score is the percentage of credit you are using, which will again benefit from keeping an account open which has a zero balance.

Stay Within Your Means

There are few things you can do which will be as helpful to your credit as simply staying out of trouble in terms of debt. Don?t buy more than you can afford, and you will be just fine in most cases. While it is good to use a credit card to build up your credit history, that card doesn?t mean you can spend as much as you want. Only make purchases as if you were making them with cash.

Monitor Your Credit

You should have no trouble at all finding a service which will help you monitor your credit over time. It is a good idea to use one of these services ? you may even get this free with your credit account ? to make sure that no surprise activity is taking place. You will see how your actions affect your credit, and you will be able to work toward a higher score using this information.

Find New Income Sources

Making more money is always going to be a good thing from a credit perspective. With a larger income, you won?t have to lean on your credit so heavily, and you will be able to avoid debt trouble down the line. Thanks to the power of technology, there are more ?side hustle? opportunities available today than ever before.


Do you have a good credit score? How do you maintain it?


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5 Things You Never Thought a Low Credit Score Could Ruin

5 Things You Never Thought a Low Credit Score Could Ruin

5 Things You Never Thought a Low Credit Score Could RuinCredit is a term that has been around for the past few decades. Your credit score affects everything you do and want to do, especially when it comes to big purchases such as a house or car.

We all know the higher the credit the better. We also know that if we have a low score we need to get it higher. But, why is that?

A low credit score deems you a risky borrower. Low credit scores can hurt you in more ways than you think. Here are some things you might not have known a low credit score could ruin.

1. Your Relationship

Money and kids are two of the biggest factors that can drive couples apart. If you hide your low credit score from your spouse, it can come back to bite you when you apply for a house loan, buy a car and even look at renting an apartment.

When you apply for a house loan, the mortgage company runs both your credit to see how reliable you are. If?your shady score pops up, the lender will most likely give you higher interest rates and raise the minimum down payment to make sure you won?t default on your mortgage. If this is also how your spouse finds out your credit score, things won?t be so good. Be open and honest and together you can work to improve your score.

2. Your Chance to Buy a Home

As stated above, a low credit score can block you from getting certain mortgages, low interest rates and a lower down payment. If your credit is very low you may not be able to buy a home. This is a major hindrance, especially if you found your dream home.

If you are considering buying a house, go talk with your lender and see where you are at. They can help you make a plan to get that score up so you can buy the home of your dreams.

3. Approval for an Apartment

Believe it or not your low credit score could make it hard for you to rent. Landlords do run credit checks to see how reliable of a renter you would be. If your credit history shows a lack of consistent payments or even paying off of debt, that could mean you won?t pay your rent on time and therefore not a good renter.

4. Your Dream Job

This one can really hurt you and can come out of the blue. You could be the perfect fit for the company, aced your interview then not get the job because you didn?t pass their credit check. Most employers will run a credit check as well as a background check. A low score could be a red flag for the potential of embezzlement, untrustworthiness and reliability.

5. Starting Your Own Business

Should the entrepreneurial bug bite you, a low credit score could mean not securing the business loan or line of credit to operate. As businesses start out they rely on the owner?s line of credit to get started and then build its own as the business grows. Low credit score means higher interest rates and a harder time securing the proper financial channels for your business.

These are milestones that have a major effect on your life. The good news is that it?s possible to raise your score. It does take time and creating better financial habits, but it can be done. Discuss your situation with a financial planner, lender, or a financially responsible friend and they will help you find where to start and how to go about getting that score up.


Do you have a low credit score? How has it affected your life? What have you done to correct it?


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7 Ways to Build Credit Without Credit Cards

7 Ways to Build Credit Without Credit Cards

7 Ways to Build Credit Without Credit CardsThe most popular and probably fastest way to build credit is to get a credit card. Those small plastic cards of magic can make or break a person and their credit scores.

Though a lot of people can manage and actually better their credit with credit cards, there are still a?lot who can?t. If you need to raise your credit score but you don?t trust yourself with plastic, you need an alternative. Here are seven alternative methods to build credit without credit cards.

Paying All Your Bills on Time

Sometimes rent and other bills are reported to the credit bureaus. This can help your credit score tremendously. Paying on time, and in full, will help your credit score. The more regular you are with payments, the higher your credit score will be, which can save you money by helping you get a better interest rate on future loans.

Student Loans

Now you shouldn?t take out student loans just to build your credit. Student loans aren?t there to increase your credit score. They are meant?to help pay for your schooling. But, student loans are a great way to build your credit by paying on time and making regular payments. It?s an installment loan. This means you pay for it over time and eventually pay it off, which is different than revolving credit. Credit cards are revolving credit, where you can continue to make charges and never actually have your entire balance paid off.

Get a Small Personal Loan

Personal loans can be attained from a bank or credit union. These don?t usually need to be backed by money you put down and you can get them for small amounts. Talk with your banker to see which or loans would be good for you to build, or rebuild, your credit. If the interest rate is low enough on a personal loan, you might even consider taking one out for a large planned purchase, even if you have the cash saved up already, just to improve your credit score.

Take Out a Special “Credit Builder” Loan

These loans are meant for people to help build their credit. The loan amount is minimal and you work for a year or two to pay it off. The loan payments are put into an interest-bearing CD or a regular savings account. This will help you build credit as long as you pay on time. The bank reports these payments to the credit bureaus to help improve your credit score.

CD Loans or a Passbook Loans

Another way to build credit without a credit card is with a CD loan or Passbook loan. These are loans made again what you already have in savings. This way if you default on payments, the money is already there to cover your missed payments. CD or Passbook loans are meant specifically for people who have no credit or a very low credit score.

Utilize Peer Lenders

Peer lending only helps your credit score if they report to the credit bureaus, so this is something to ask about before you apply for a peer loan. Peer loans could have higher interest rates than bank loans, but it’s still a potential idea to help increase your credit sore.

Get Signed as an Authorized User

This means you get a family member or a close friend to make you an authorized user on their credit card. So technically you are using a credit card, but you are not fiscally responsible for the payments. If your family member pays their bill on time, it can help your credit score. Discuss the usage terms for the credit card with your family member beforehand so no one?s credit gets hurt. This can backfire if your family member or friend doesn’t pay their bill on time or has a low credit score themselves.

There are ways you?can build credit?without credit cards, but it takes discipline and time. Budgeting, keeping up on payments, and paying off debt are huge for increasing your credit score. It?s doable but you need to be diligent.


Have you ever raised a low credit score? Did you use any of these ideas to build credit without credit cards?


Photo courtesy of: CafeCredit.com

4 Ways to Stop Swiping Credit Cards So You Can Get Out of Debt

Credit Cards

ID-100276685One of the first pieces of advice you?ll likely run across when you are looking for help getting out of credit card debt?is to quit using your cards immediately.

This is excellent advice and should be followed to a T. Some suggest cutting up your cards and canceling your accounts as ways to help you stop swiping plastic so you can get out of debt. Both of these options seemed a little harsh and maybe even illogical to me, so I didn?t do either one of these things to make myself stop using my credit cards. Instead I?ve tried a combination of several different ideas.

Here are four ways to stop yourself from swiping credit cards so you can get out of debt without doing anything too drastic.

Freeze Your Cards

One idea I haven?t tried but I know a lot of people have is to freeze your cards in a block of ice to help you avoid using them unless absolutely necessary. This will really test your willpower as you will have to allow the ice around your credit card to thaw before you can put it in your wallet to use it at a store.

The only downside I can see with this method is that you might still be able to use your credit card for online shopping if you can read the card number through the clear ice.

Leave Your Cards at Home

To help myself avoid using my credit cards for impulse purchases while I?m out and about, I simply leave my cards at home. I keep them in a safe place and only take one with me if I specifically have to use it and it makes logical sense to use it.

For instance, I might still use a credit card for online purchases that I?ve budgeted for because credit cards tend to offer great security for online shopping.

Hide Your Cards

If you find yourself feeling tempted to take your cards with you and the leaving them at home method doesn?t work, perhaps you can enlist a friend or family member to ?hide? them from you. If you use this method, make sure whoever hides them for you will remember where they are if you need them for some reason. If they have a questionable memory, maybe a note of where they are hidden is a good idea. 🙂

Wrap a Reminder Around Your Cards

Occasionally I find myself wanting to carry a credit card in my wallet ?just in case.? This is usually when I?m traveling. When this happens, I wrap a sticky note reminder around my credit card before I stick it in my wallet with something like ?For Emergencies Only? written on it. This visual reminder is usually enough to help me stay strong and not use my credit card for splurges or impulse purchases.

Why You Shouldn?t Close Your Card Accounts

Finally, I just wanted to include a small note about why closing your credit card accounts, as some suggest, may not be a good idea. Closing your credit card accounts lowers the amount of available credit you have which increase your credit utilization ration.

For example, if you have $5,000 of available credit (the total of all your credit limits) and you have debt of $2,000 you have a utilization ratio of 40 percent. If you close an account that had a $1,000 limit, your available credit will drop to $4,000 and your utilization ratio will increase to 50 percent if you still have $2,000 of debt. This will have a negative impact on your credit score?as a lower credit utilization ratio is important.

A dropping credit score may not be important to you if you do not plan to use credit again, but if you are planning to purchase a home, a car, or something else on credit you want to make sure your score is as high as possible. Even if that?s not the case, some rental companies won?t rent property to you if you credit score is low and even some employers will not hire you based on a low credit score. Just some food for thought.



Have you tried any of these methods to keep from swiping your credit card? How do you avoid using credit cards? Have you chosen to go completely without using credit cards?



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