| The global credit crunch is cutting the banks ability to | | | | remove the disputed item from the credit report. |
| lend money out. As a result it's more important than | | | | If your credit rating is not currently good then make |
| ever to boost your credit rating in order to get loan | | | | sure you avoid opening multiple new accounts within a |
| approvals. Find out how to get the credit score you | | | | short timeframe. |
| need to secure the loans you want. | | | | It is best to pay your bills on your time. Don't overspend |
| As the global credit crunch continues to bite the banks | | | | on your credit cards and get into the revolving credit |
| are finding themselves with less money to lend out. As | | | | cycle. Limit your monthly spending on your credit card |
| a result they are getting picky over who they lend to, | | | | to a maximum of 25% of your credit limit. For example, |
| meaning you need to ensure your credit score is in | | | | if the bank provides you a credit limit of $30,000, it is |
| good shape to get the loan you want. | | | | better to keep your spending down to $5,000. Stick to |
| If you have had enough of making late payments on | | | | a maximum of four credit cards. Anything more than |
| credit card spending or meeting loan repayments, it is | | | | this and you will find it unmanageable. |
| time to pull up your socks and do something about | | | | Many advocate moving credit card outstanding to |
| improving your credit score. The flip side of bad credit | | | | cards that offer lower rates of interest. But this can |
| is that you can do something positive to improve your | | | | actually hurt your credit rating. Closing old, paid-off |
| credit rating. With persistence, time and patience, you | | | | accounts doesn't help. Closing old credit cards actually |
| can bring up your credit rating by 50 to 100 points. | | | | shorts the credit report and makes you look less-credit |
| How do you go about doing this? One way to start to | | | | worthy. |
| clean up your past record would be obtain your credit | | | | Even if you have paid your dues in full, your credit |
| reports from the companies that provide the reports | | | | report will be valid for a period of 7 years. Your credit |
| like Transunion, Equifax and Experian. These | | | | score will improve but the past history will not change |
| companies have different ways of allocating scores | | | | things wholesale. You need to build positive credit. One |
| and have different items for assessment. Once you | | | | way is to use secured credit cards. The bank will |
| know the exact contents of your reports, you can plan | | | | require you to deposit with them a sum of money and |
| a clean up operation to boost your credit rating. | | | | you will be allowed a credit limit ranging from one and |
| Do you know that some companies don't provide | | | | a half to 2 times your deposit. The transactions on this |
| accurate information in credit reports. You should | | | | card will appear on your credit report but nobody will |
| carefully scrutinize these reports for factual errors and | | | | know that your credit card is secured. |
| get them corrected with agency. You can avail | | | | Don't opt for the easy way out and declare yourself |
| yourself of prepaid legal services to help you sort out | | | | bankrupt. This will cost you heavily in the long run, in |
| disputed items, if any. If this is not possible, you should | | | | terms of high interest rates and continuing bad credit. |
| send a letter through certified mail to make sure that it | | | | Improving your credit rating looks difficult but it can be |
| is received by the agency. Under the law, these | | | | done. It takes patience, application and perseverance. |
| agencies have to respond to you within 30 days or | | | | |