| One of the unfortunate things about credit is that | | | | a lender such as car dealer, or a bank is going to lend |
| people don't usually start to get concerned until it's | | | | you money, they first must assess your credit history |
| already screwed up. That's when people head to | | | | and see how timely you were with previous loan |
| Google and type in 'Improve Credit Rating' and other | | | | payments. Just get a small loan from someone, even if |
| related search terms. The thing is that your credit | | | | it's a high interest loan and pay it back on time. |
| doesn't usually get messed up overnight, but is the | | | | Normally when you get a loan you spend all the |
| result of bad habits and neglect over time. You must | | | | money on something and then must make the |
| take care to not make the mistakes you've made in | | | | payments from income generated from your job. With |
| the past if you hope to keep good credit once your | | | | a small loan like this, you're not going to spend the loan |
| credit is restored. | | | | on anything. All you'll do is throw it in a savings or |
| When talking about a credit score, what exactly do I | | | | checking account and pay it back in a timely fashion to |
| mean? Remember that search for 'Improve Credit | | | | develop a credit history. |
| Rating' I referred to earlier? Well that is all about what's | | | | 2. I always tell people to try their best to keep their |
| referred to as your FICO score. This is a number that | | | | credit card balances low. What is especially damaging |
| is a assigned to you that ranges from 300-850. It is | | | | to your credit score is when you max out your credit |
| calculated with a formula that uses the information in | | | | cards. That is BAD. It is usually best to have your |
| your credit report. Your credit score tells lenders how | | | | credit card balance at or below 25% of you credit |
| credit worthy you are and how likely you are to to pay | | | | limits. This is something most people don't know. It's |
| back a loan on time. The higher your score, the lower | | | | better to have 10 grand in debt spread out amongst 5 |
| the interest you'll pay on loans. The lower your score, | | | | credit cards than on 1 unless that one card has an |
| the higher the interest you'll pay. If your credit is | | | | exceptionally high credit limit. |
| extremely low, you may be flat out rejected for loans | | | | 3. When it comes to ways to improve credit ratings, |
| altogether. | | | | this one may seem extremely obvious but it is often |
| There are many things you can do to improve your | | | | overlooked. PAY YOUR BILLS ON TIME! 35% of your |
| credit score. Here are a few: | | | | credit score is based on your credit history. Not paying |
| | | | bills on time can really screw up your credit score. |
| 1. This may sound crazy, but get a small loan. Any time | | | | |