HOW TO IMPROVE CREDIT SCORE.

Credit score have been a vital issue to many household who wants to finance the purchase of there car through credit. It is one of the crucial factor credit institutions considers before lending out money to people who wants to finance there car and other assets. Thus it is used to determine how much they can lend you as well as interest rate you be paying. The optimum credit score is 720 and above. If you have this score, getting loan can be easier for you when compared to someone without or below this score. This article will tell you how you can improve your car insurance credit score. Check it out

First, you have to know your current credit score which can be found from your local credit bureau and how much do you want to increase your credit. This is the first step you have to take and it’s very vital.

Second Take a look at your debt to credit ratio as this is one of the area that hold the key to your credit report. l will give example, if you have $10000 in your credit account and debit of $3000, then your debt to credit ratio is 30%. Having sufficient or adequate debt to credit ratio will go along way to improve your credit score quicker when compared to paying off some of your bills. This is to say that your debt to credit ratio have a great impact on your car insurance credit score. The key is to strike a good balance between your debts to credit ratio.

Third, try as much as possible to have credit experience which can be from any source. Many lenders take a look at how you have been handling your past credit to determine lots of factors like payment rates, rates due just to mention few. This credit experience may include borrowing to finance your home, taking credits to buy some properties and how you repaid back or to finance the purchase of student computer. Other are;

– Pay off your debts from debt collection agency. This is one of the ways to improve your credit score.

– Do not close your account with long credit history. This is very important

– Twice a year, try as much as you can to increase your credit limit as this will increase you credit score.

Pay your debts and bills on time.

Moreover, subscribe to news letter, rss feeds of rich car companies and Credit Company. The key concept here is to be in there data base so that when they send out targeted credit offer, you will be in position to receive it. This point will be properly be explained in my book but the bottom line is this, if you learn to be in these companies data base and in refined list which they collected through there news letter and they ones they purchase, the credit building process goes up faster.

These are the simple ways to improve your credit score. A more complete and detailed explanation will be published later.

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