Free Credit Report - 3 Ways To Improve Your Credit Score Using A Free Report Online

The majority of the population is not in a position to pay cash for home and
automobiles. Hence, when making a large purchase, most people must take
advantage of financing options.
Financing, or obtaining credit, makes it possible to comfortably afford a
home, automobile, etc. However, financing does come with limitations. If you
have good credit, your finance options are many. On the other hand, if your
credit needs improving, you may be unable to obtain good rates when choosing
to finance merchandise.

Advantages of Maintaining a Good Credit

Sadly, many consumers underestimate the importance of maintaining good
credit. Secondly, some people fail to regularly monitor their credit reports
and credit scores.
Credit is very important. While it is feasible to obtain financing with bad
credit, you will likely receive higher rates and undesirable loan terms.

Before applying for any type of credit, take time to review your personal
credit report online. This way, you are knowledgeable of your credit
standing. In addition, you can take steps to improve rating. Here are three
tips on how to improve credit rating and boost your credit score.

Pay Creditors on Time

Paying bills late is extremely damaging to your credit report.
If a creditor receives your payments one day past the due date, they have
the right to increase your interest rate. Moreover, other creditors may also
increase your credit card interest rates if you pay another account late.

Making timely payments will add points to your credit score.
The higher your score, the better your credit. On the flip side, continually
paying bills late will be revealed on your report, and decrease your overall
credit score.

Reduce Debt to Income Ratio

Your online credit report will include all pertinent information, including
how much debt you owe. Having an excessive amount of debts will also lower
your credit score.
Rule of thumb: the more available credit you have, the better.
This indicates self-control and the ability to use credit wisely. On the
other hand, if you have several maxed out credit cards, future lenders may
be less willing to grant you additional credit.

Keep Old Credit Accounts Open

Many assume that closing old or paid accounts will increase their credit
score. However, this maneuver does the opposite.
Again, available credit is good for your credit score. If you pay off a
credit card, and close the account, the credit is no longer available.
Instead, keep paid off accounts opened. If you are determined to get rid of
a few credit cards, cancel newer or recently opened accounts.

About The Author: View our recommended sources for a free personal credit
report http://www.abcloanguide.com/freecreditreport.shtml.