HOW TO IMPROVE YOUR CREDIT RATING?

A credit score is meant to determine the likelihood of an individual paying back borrowed money. Using your credit score, lenders will determine what risk you pose to them. The primary factors used to evaluate an individual’s credit score are his or her credit payment history, current debts, time length of credit history, credit type mix and frequency of applications for new credit. The following are strategies to improve your credit ratings:

• Make your loan repayments timely and of the correct amount.
• Avoid over extending your credit / continually extending your credit to the limit which is viewed poorly.
• Do not ignore overdue bills. At the first sign of trouble explore all solutions.
• Keep your outstanding debt as low as you can.
• Limit the number of credit applications.