Control your personal finance   free website content | contact | privacylink partners
Home » Personal finance
Money articles

» Personal finance
» Credit cards
» Saving money
» Debt elimination
» Budgeting
» Investing
» Business
» Real estate
» Making money
» Miscellaneous
» Career
» Loans
» Promote your business
» Insurance
» Bankruptcy

» Archive

Some easy ways to raise your credit score

By Jakob Jelling
www.cashbazar.com

Before we discuss some easy ways to raise your credit score, let us look on how the credit score of an individual is calculated by various companies. The credit score an individual is calculated by checking these factors: on time or late payment of debts or financial obligations (35%); your length of credit history (15%); ratio of your current credit card balances to the total credit limits (30%) - that is the ratio of current revolving debt to the total available revolving credit; your types of credit used (that is whether revolving or installment) (10%); and your credit levels obtained in the past (10%).

This is the method by which financial institutions calculate the credit worthiness of an individual. Having a good credit score is very important as it is considered as the benchmark by financial institutions to decide whether to advance your credit or not. You can raise your credit score by focusing on each of these steps and by making on-time repayments for any debts you have made.

Let us explain in detail the different ways to raise your credit score.

One of the easy ways to raise your credit score is to start paying your bills on time. To earn a good credit score you need to pay your bills on time, any late payments can affect your credit score. If you have two bills, Bill X and Bill Y, and has only limited funds with you then it is better to pay the higher of the two so that it will cause less damage to your credit score. Also it is recommended to avoid declaring bankruptcy as it will affect your credit score for about seven years.

Lowering your ratio of revolving debt is another way to raise your credit score. For lowering your ratio of revolving debt you need to stay between 10 - 30% of your available credit limit on each credit line. Also try not to exceed 50% on any credit line.

Remember to keep your balances low. That is, huge outstanding debts on your credit cards can result in decrease of your credit score. So try to pay off your huge debts and keep your account balance low.

Try not to apply for credits frequently. When you apply for a credit an inquiry will be placed in your file. And if you apply too many new credit applications your credit score will decrease.

Closing an unused credit card will not help you to raise your credit score. But remember not to open many new credit card accounts to increase your available credit. Having so many credit cards is considered not as a good approach.

Having a few credit cards with reasonable credit limits and balances will help to raise your credit score. Remember to create a good credit history you need to keep your credit score always in a good position. It is not a huge task, make sure you all your outstanding bills pay in time and you have no huge outstanding debts in your balance. It may take some time to raise a low credit scoring, but you all need is your patience and your effort. At last, it is sure your effort is well worth the reward.

About the author
Jakob Jelling is the founder of http://www.cashbazar.com. Visit his website for the latest on personal finance, debt elimination, budgeting, credit cards and real estate.

Search CashBazar

Google
 
Web www.cashbazar.com


Latest money articles

» Controlling the price changes in futures markets
The lock-limit is one way that the markets can be controlled.

» How much will price changes effect stock trading?
Price elasticity is an economics term that refers to the way that price changes of stock can affect the demand for that stock.

» Large volume trading in steps
Program trading is a term that is also used in at least two different (though similar) meanings.

» How many stock options are available?
Open interests are not a feature of all stock market trades. In fact, open interests are calculated based on options and futures trades.

» Protect your portfolio from large losses
If you are worried about the stock market, then you might want to consider portfolio insurances.

» Insure your investment without limiting returns
Are you looking for a way to trade on the stock market without having to deal with all of the risks?

» Regional funds explained
Increase your portfolio diversity with funds from other regions.

» What is a derivative?
Invest in commodities without buying the commodities themselves.

» What is an option?
An option is an agreement that a commodity or stock will be available for purchase at a set date.

» Should I always pay a commission when buying mutual funds
There are three main types of mutual funds when it comes to commissions.

» Find the lowest risk investment portfolio
If you're trying to find a good investment portfolio, then you may want to look at the Treynor measure.

» The difference between PAX World Funds and The World Funds
The first type is purchased through the company PAX, and these funds focus on socially responsible companies.

» The Alpha factor explained
A new method of differentiating between different investments.

» How good is your planned investment
A company prospectus is a legal document that has been filed by the company that you might be thinking about investing in.

» How do I find the best investment advisor?
If you're looking for the best investment advisor for you, you should make sure that you pay attention to the type of investments that that advisor usually recommends.

» How to find the best full-service stockbroker - ask questions
Before you decide who you should choose for your full-service stockbroker, make sure that this is the best option for you financially.

» Investing in commodities
Investing in commodities is not too hard to do - the real problem comes in when you are trying to decide which commodities you should invest in, and when it is better to buy or sell a particular product.

» Don't wait to get your retirement payments!
If you're looking for an annuity, there are a variety of different annuities to choose from.

» Multisector bond funds explained
If you are looking to invest in bonds, but you are not sure that you want to deal with making all of the purchases on your own, bond funds might be the right option for you.

» Private annuity explained
The biggest difference between a regular annuity and a private annuity is that private annuities take place between two individuals, instead of between an individual and an insurance company.

» Avoid estate taxes with a life insurance trust
If you're looking for another way to insure yourself with a life insurance policy that will avoid any taxes after your death, then you should look into getting a life insurance trust.

» What is a Section 1035 policy exchange?
Don't lose insurance money when you change policies.

» Who should consider annually renewable term life insurances?
If you're looking for a good insurance policy, then you should probably take a good look at your financial situation, and at what you can count on being your situation in the future.

» Death benefit only plan explained
If you need life insurance, but you are not able to afford the regular price for life insurance, then you might want to look into a death benefit only plan.

» How to save money on your homeowner's insurance
In the case of homeowner's insurance, the most common way to reduce the amount of money that you will be paying each month is to increase your deductible.


Make money online

Please visit Sitetube.com and learn how to profit from your website.