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Improve-Your-CreditThere are no secrets to improve-your-credit score.Common sense and discipline are the primary requirements. Due to the easy availability of credit through loans and credit cards, we have all at some point in time gone into debt. The trick is to manage or eliminate this debt and increase your net worth. There is good debt and bad debt. Good debt is paying the least amount of monthly interest available on purchases that will to your net worth, i.e. Buying real estate at 30% discount. Bad debt is paying exorbitant monthly interest frivolous items that add nothing to your asset base. The first step to improve-your-credit rating is to study your current financial situation. The following are points to consider • Know your monthly income and expense cash flow (financial statement) • Know where all your indebtedness lie, i.e. credit card payments, car loans, home mortgages, etc. • Find out your credit report score • Take control of your debt [Free Debt Consulting is available.] Your Credit Report Score Your credit report score or credit score is a mathematical formula contrived by credit reporting agencies – currently Equifax, TansUnion, and Experian – that is used to calculate your credit worthiness. The credit score ranges from 300 to 850. The higher your score, the better your credit worthiness. A higher score could be the difference between your loan being approved or disapproved or your receiving preferential conditions and terms, i.e. (lower interest rates). Your Credit Report Your credit report is a continuously updated file of your personal information, credit information which includes information found in public records such as tax liens, and any formal inquiries made. It is a detailed history of your financial life – loans, credit cards, bankruptcies, income and expenses to name a few. It is important to remember that any government agency, business or individual may request your credit report if there is a legitimate need involving the public or government agency. Since any formal inquiries made will impact your credit score, your prior approval is required. It is important to check your credit report at least yearly to check for any discrepancies or malfeasance. In the Internet age, fraud and Identity theft are constant threats to your financial wellbeing. Ways to Improve Your Credit Score • Check your report for any inaccuracies. If you subject to collection activities, have this deleted from you files. It can be done if delinquent payments were paid and a request is made to the credit reporting agencies • Pay your monthly balance dues in a timely manner. Try to pay it off as soon as you can, paying more than the minimum balance due per month. But keep the account open. This will show that you are a good credit risk • Avoid bankruptcy • Keep for formal inquiries a minimum. Inquiries made on your credit report will lower your score
Find ways to improve-your-credit
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