There are three major things that have an extremely pronounced effect on your credit rating. Want to know what they are? Keep reading, because I'm going to lift up the curtains and tell you exactly what you need to know.
Many people are completely stumped when it comes to their credit rating. That's a bit sad, considering how important this number is in our society. Do you wonder the answer to simple questions such as does paying bills improve your credit score? Paying regular household bills such as your electricity does not build your credit, but paying your credit card bills certainly does.
Perhaps the most important aspect of your credit rating is your payment history on your credit cards and loans. It is almost impossible to have a credit rating that is anywhere near good if you do not make it a point to always pay your credit cards before they are late. By paying your credit cards on time, you will avoid hefty penalties and build credit at the same time.
After paying your credit card payments on time, the best thing you can do for your credit score is to try and keep your balances on your credit cards as low as possible. Think about it; would you want to loan additional money to a friend who was already up to his ears in debt? Neither would your lenders.
The length of time that you've had your credit accounts open is a third factor. While not as important as the previous two things that we discussed, the average age of your credit accounts continues to be an extremely important part of determining your overall credit rating.
While I could go on all day about minor issues which have small effects on your credit rating, it's not necessary because I've already covered what are by far the most important factors.
Fortunately, once you understand the factors that play into your credit rating, you become the master of your score and can begin to work on improving it. Avoid activities that negatively impact your credit score, and partake in activites which raise it. It really is that simple! - 33385
Many people are completely stumped when it comes to their credit rating. That's a bit sad, considering how important this number is in our society. Do you wonder the answer to simple questions such as does paying bills improve your credit score? Paying regular household bills such as your electricity does not build your credit, but paying your credit card bills certainly does.
Perhaps the most important aspect of your credit rating is your payment history on your credit cards and loans. It is almost impossible to have a credit rating that is anywhere near good if you do not make it a point to always pay your credit cards before they are late. By paying your credit cards on time, you will avoid hefty penalties and build credit at the same time.
After paying your credit card payments on time, the best thing you can do for your credit score is to try and keep your balances on your credit cards as low as possible. Think about it; would you want to loan additional money to a friend who was already up to his ears in debt? Neither would your lenders.
The length of time that you've had your credit accounts open is a third factor. While not as important as the previous two things that we discussed, the average age of your credit accounts continues to be an extremely important part of determining your overall credit rating.
While I could go on all day about minor issues which have small effects on your credit rating, it's not necessary because I've already covered what are by far the most important factors.
Fortunately, once you understand the factors that play into your credit rating, you become the master of your score and can begin to work on improving it. Avoid activities that negatively impact your credit score, and partake in activites which raise it. It really is that simple! - 33385
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When you've already made lots of late payments or you are heavily in debt, your credit rating may already be bad. If that sounds like you, then you should look into a service like Lexington Law.
