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Friday, February 20, 2009

Boost your Credit Score

By Steven James

Having good credit is very important in today's society. It is something that many people should have and it is also something that people today would consider to be worthy to be doing. By having a good credit score, applying for loans and unsecured credit cards is much easier.

Even though you may already have a good credit score, you will want to boost it in order to obtain the best loan and credit card deals possible. For example, if you have a credit score of 688 and the loan company could reduce the interest rate if you get a credit score of 690. The two points can mean thousands of dollars in savings from paying interest.

You need to improve your credit score even if you already have a good credit score. It will mean lower interest rates and also more chances of getting the loans you need.

There are several ways you can significantly improve your credit score. Some take time to achieve, however, if you start working on it as soon as possible, you will see that it will be worth all the effort.

So, here are some of the ways you can boost your credit score.

Check credit reports for errors. Even minor errors can significantly hurt your credit rating. So, if you ever suspect that your low credit score is caused by an error, you should contact the credit reporting agencies and challenge them about the report. It is part of the law that the reporting agency should investigate and correct the errors within thirty days if there is any.

Pay off your balances every month. This can keep you out of debt and save a lot of money on interest rate. Also, this will demonstrate that you can manage your debt effectively and therefore, increase your credit score.

By having only a few credit cards, two at most, will improve your credit score. Having five or more credit cards will in fact, lower your credit score. This is why it is important for you to have only two credit cards.

If you borrowed money before, it is important to pay it on time. This will have a positive impact on your credit score because it will show credit reporting agencies and also creditors that you can manage your debt effectively. However, if you have borrowed money before and is long overdue, you should pay it immediately.

Another way to boost your credit score is by managing your credit cards effectively. Dont use your entire credit limit on each of the credit card you own. If you have credit cards with a credit limit of 2000, 2500 and 3000 dollars, it is better to use 600 dollars on each card rather than 1800 dollars in one card. Always keep one thing in mind; it is best for your credit score if you only use less than 50% of your credit card limit.

These are some of the methods you can use to boost your credit card score. Following all these will ensure you that your credit score will increase and will result in better opportunities in the future.

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