How to Improve your credit rating? If you are a victim of credit fraud, you may be thinking of how to improve your credit score. Many victims do not realise they have been a victim until it is too late. By that time the damage has already been done and it will take some time to repair your credit rating. The good news is, credit bureaus and other organisations now have systems in place to help victims of credit fraud and identity theft.
To Build credit correctly, you first need a good credit history, so one of the most important ways how to improve your credit score is to open several accounts. Then you should prove good behaviour when you get access to these accounts. Having several accounts open with different lenders will boost your credit scoring because it shows that you do not keep your financial affairs tied to just one account.
You should also try to manage your monthly bills to ensure you pay off as much of them as possible. Some credit bureaus and financial institutions like Experian and Equifax also ask for your payment history on unsecured bills like store cards and telephone bills. By paying off your bills this way it looks that you are responsible. Your payment history is also important if you wish to apply for another bank account like a credit card or an apartment. You must maintain a good credit score, so that your next bank account will be approved.
If you find yourself becoming a victim of fraud, the first thing you should do is report the crime to the credit bureau and then follow up to make sure that your account got closed. The credit report is one of the first things that fraudsters look at to determine whether they have succeeded in stealing your identity. So it is important that you know how to improve your credit score, because your credit report is a crucial document for approval purposes. If you find any fraudulent activity on your credit report, you should dispute it immediately and dispute every item on the report. You can contact the three credit bureaus, Equifax, Experian and TransUnion to send them all of the evidence you have gathered to prove that your accounts were a victim of fraud.
Another step on how to improve your credit score is to use the credit reference agencies when you want to apply for new loans and credit cards. When you use the reference agencies, the banks and financial institutions have to contact the reference agencies instead of you. This way it looks as though the bank or the financial institution has used your information to make a decision. This can lower your score slightly but it is better than having no score at all.
The last way how to improve your credit score is to only borrow money that is absolutely necessary for you. If you are in need of money and you don’t have it, just don’t borrow it. It is very easy to acquire credit scores that are faulty because the lender pulls your credit scores too often. So only borrow what you need to purchase something that you can pay back. This also helps to keep the lenders from pulling your credit scores too frequently.
It is also important that you keep your credit accounts open and active. There are many lenders who check the credit history of individuals who are applying for new credit cards or loans. They look for signs such as open accounts and paid off accounts to determine if you are able to manage credit responsibly. If you are constantly opening credit accounts that are still being paid off, then you will not be considered a responsible borrower.
Lastly, it is important that you always pay all of your bills on time. There are many lenders who check credit history as well as financial history when approving loans to people. If you are always late paying your utility bills or your car loan, then you may end up getting rejected from a lender and this can lower your credit score. So by always paying your bills on time, you can save yourself from having your loan applications turned down.