The significance of a good credit record can not be emphasized enough. It is so very important when obtaining loan and availing credit. In case you don’t have a good credit score, the given tips can be a boon.

The golden principle to follow to boost your credit rating would be to avoid taking extra debts. Very few are aware that every month your credit card report is circulated to numerous credit agencies by the credit card issuer. So, it seems sensible to pay off all your credit card bills on monthly basis. The credit reporting agencies aren’t concerned with how you clear your outstanding payment be it the next month or right away after some days. They just look if you have missed the deadline or not. And, in case you have crossed your due date, your name gets added to the list of defaulters.

Timely payment of bills too goes a long way in increasing your credit rating. After all, the payment history covers almost 35% of the total credit history value. If you are not regular with your payments even once, you may well lose out on 50-100 vital points from your total credit. Be regular with timely monthly payments of cholesterol lowering medications or any other purchases. This will help you build up a strong credit history.

It’s a usual thing for people to shut down the old accounts as they aren’t used often. While it might save you from botheration of handling countless accounts, it could negatively impact your credit history too. Cause for the same being, closing of the account, takes away the credit amount available to you via that account. Because of this, the outstanding balance assumes a bigger percentage in your credit rating calculations. If you have lesser number of accounts, then the outstanding balance for expensive purchases like car audio equipment or any other can look like even more high.

Though it is important to strive for improving the credit rating, it’s similarly crucial to watch your current credit standing too. The best way to do so is to ask the credit bureau to give you a credit standing copy each month. This way you can also figure out any errors such as calculation errors in the copy which if left ignored could decrease the entire credit score. The credit report is normally given by big bureaus such as Trans Union, Equifax, and Experian. Every bureau offers a different credit score and might not match with score of one another. However, this is no cause of worry at all.

So, follow the given tricks and you’ll absolutely increase your credit standing very quickly.

Here is some more information on Cholesterol Lowering Medications and Credit Score.