What You Should Do To Improve Your Credit Score

If you have a poor credit score, it certainly has an adverse impact on your financial standing. Needless to say, it causes you mental stress and strain. Your credit score need not necessarily remain poor forever! If you are serious about improving it, it is possible and it can be done. The first right step, in this direction, is this: you contact one of the credit agencies and get a copy of the latest report relating to your credit. It could be obtained free; there is no fee. You go through it very carefully. If you find any error therein, you should at once bring it to the notice of the credit agency, so that it is rectified. By going through the report, you will be able to locate where your personal attention is required.

AVOID USING CREDIT CARDS

As a temporary measure at least, you should seriously consider avoiding use of credit cards. As a simultaneous action, you should make it a point to settle your past dues on credit cards. In the event of your inability to settle the dues, you should convey this to your credit card provider. He will be in a position to offer you some alternative suggestions which will  not only solve your problem but also ensure that your credit score Is not affected. You should also refrain from using the credit cards for purchasing something new. These efforts of yours will enable you to get the credit score improved.

DON’T HESITATE TO CLOSE YOUR CREDIT CARD ACCOUNTS

You should first come out of your ‘fear complex’ because of the poor credit score. Nothing in life is permanent and your credit score is no exception! Once you start taking actions in the right direction, you will find that your credit score moving upwards gradually. You have no second thought as far as closing the existing credit card accounts. Some people entertain doubts about the usefulness of such settlements and, on the contrary, they fear this will have adverse effect on credit score. It may be partially true; at the same time, you cannot overlook the benefit it has; it helps in the steady recovery of your financial position.

CREDIT SCORE REVEALS EVERYTHING

It is a known fact that credit score is reflective of every detail concerning financial transactions. It will reveal, in full measure, all the relevant details such as when and how you settled the various bills. You would have settled some of the bills not fully but only a part of them. This you would have done with a view to make a fresh beginning which you would have been aiming to do. A settlement of this sort, enables you to get rid of the credit card dues much earlier, whereas it would have taken much longer time in the normal course.

IMPACT ON THE ‘THREE DIGIT’ CREDIT SCORE

Due to your actions in making such settlements, there will be a serious set-back to the most invaluable ‘three digit’ credit score. There will most certainly be a negative impact. However, once you are on your feet back again and with much improved financial position, there will be a steady increase in your credit score. You will thus be able to enjoy life with good credit rating. By closing some of your accounts by making settlements with the creditors, you have paved the way for extra income as well as a sense of happiness