Since I uploaded two blog posts, ‘True or False about individual credit rating’, I assume that our readers corrected previously misunderstood information. Then, what should we do from now on? For today, I would like to let you know ‘ways to upgrade your credit rating’. These tips are not demanding great efforts. However, once you follow all of them, it will surely help upgrade your credit rating!
Never make an overdue payment
Although you clear your overdue payment, your credit rating is not immediately upgraded. Rather, it takes a while to recover your previous credit rating. Since a record of overdue payment is kept for three years, you should be mindful of not making an overdue payment.
Surety obligation is one kind of loans
Holding a surety obligation is included in an individual credit record. That is, surety obligation is considered a form of personal loan, which limits your credit line, or in some worse cases degrades your credit rating. Remember that surety obligation is loan under your name.
Do not trap in a vicious cycle of holding multiple credit cards
How many credit cards are you holding at the moment? There is nothing wrong to hold more than one credit card. However, you are having a trouble once you get trapped in a vicious cycle of multiple credit cards. Make a credit card payment by using another credit card, which goes on and on…. This is a real problem. You are stepping into further debt trap. The best resolution is not overspending.
The very first step should be repaying your loan
To a better individual credit rating, you might come up with two options. ‘Save’ or ‘Repay loans’. First, repay your loan, and then start saving. The larger your debt amount is, the less likely your credit rating is upgraded. On the other hand, saving does not directly influence over credit rating. Remember this step. Save your money once you clear your loan.
Think about it once again before getting cash advance
Cash advance is a convenient and quick way. However, it negatively influences your credit rating, if you use it too frequently in a short period.
Abovementioned tips do not ask difficult jobs. However, being unaware of them, you might unconsciously do something that may downgrade your credit rating. I will bring five more tips in the next blog post!