Improving Your Credit Rating

If you are on this site, there is a good chance you are looking to get a mobile phone contract with a low credit rating. You have probably tried applying through the traditional means, but were denied because of your credit rating. While you can certainly use this site to find a mobile phone contract with a  bad credit rating, a better long term solution would be to improve your credit score. You can get a mobile phone contract for now, but in the mean time you should be working to improve your score so that you can get a normal contract somewhere down the road.

           

The first thing you want to look at to improve your credit score is removing debt. Being in debt, whether it be from a personal loan, a student loan, or your credit card, will harm your credit score. Credit reporting agencies want to see that if you borrow money, you are able to pay it back. If you want to improve your credit score, removing debt should be a top priority. Talk with the companies you are in debt to and see if there are any options that will make paying your loan back easier. Also look at how much you are paying off each month, and see if you can increase this amount even by a little bit. If you have several debts, try and pay the ones back that have the highest interest rates, as these are the ones that will end up costing you the most.

           

After you have started working on your debt, you will want to look at your credit card usage next. How you use your credit cards goes a long way towards a healthy credit score. For starters, you need to have at least one card, and you need to be using it frequently. Credit reporting agencies want to see that they can trust you with credit, and in order to demonstrate this you need to have a card. Beyond that, you need to be using this card correctly. Don't over-spend on it, but also don't keep it tucked away. Try and keep your spending between 25 and 75 percent of your credit limit for each card. Also be sure that you are making the required payments each month, and that you are paying off as much of your credit debt as you can. Letting too much carry over is a bad sign, and it will harm your credit score.

           

Lastly, whether it is on a loan, for your credit card, or your electric bill, you want to make sure you are making all of your payments. A single missed payment can bring down your credit rating for a long time. On time payments are one of the biggest factors when it comes to demonstrating that you are responsible, and this in turn will raise your credit score. The best way to ensure that you will meet all of your payments is to have a solid budget plan set up, so that you know you can afford each payment, and a calendar that has all of the payment dates written down on it. If you have these two things, you should have no trouble making all of your payments on time.

           

Remember that improving your credit score does not happen over night. However, if you apply the methods listed above for an extended period of time, you will eventually see your score start to rise. This is why it is a good idea to start working on your credit score as soon as you can. Credit reporting agencies want to see that you are trustworthy over a long period of time, not just for a few weeks. Get started as soon as you can so that when you need a good credit score in the future, it will be there waiting for you.