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How to get a better credit report

By Janet Lacey
Published: Tuesday, June 8th, 2010

If you are unhappy with how your credit report looks like right now and want to know if there are any ways that you can use to improve it, then it might interest you to know that there are actually methods now that you can use to build the score. You don’t have to be worried about what the report says about you and can instead focus on getting a better one the next year around. Most of these tips are pretty easy to implement and should be relatively easy to incorporate in your day to day living.

Pay your bills

The simplest way to better your credit report is to simply pay your bills on time. By doing so, you can be assured of getting a much better credit score. Most of the people are unaware of how paying the bills on time actually make a difference and end up making their credit score look rather impressive. Every missed payment severely affects your credit scores, especially if it is like more than 30 days due or something of that sort. A quicker payment will ensure that you get done with the payment in the shortest possible time and also watch your scores improve quicker.

Use credit cards sparingly

There is a reason why credit card companies want you to splurge. You should have figured this out when you get a credit card that has an exaggerated credit limit, which should explain to you that your cards actually don’t reflect your true expense limit. Don’t be tempted to make purchases that you can’t really afford, even if your credit limits say otherwise. As a precautionary measure, set lower limits on your credit cards. This should naturally hinder your ability to spend unnecessarily and cause your credit score to plummet. Close down accounts and cards that you don’t use or require. If you can maintain your credit scores wisely, then that should be adequate to generate a healthy score.

Prove your credit worthiness

While not having too many credit cards is one solution, you should also try to make it a habit to ensure that you actually make use of your credit cards every now and then. Generating bills and paying them on time is vital to building a good credit report. If you suddenly drop from the radar and abstain from suing credit cards altogether, then it become a problem and will show you in poor light. Hence, don’t go to this extreme either and try to maintain a healthy financial budget.

Monitoring and having control of your finances is vital and will ensure that you have good credit history. Don’t get carried away and get too lax about your credit details. Remember to practice healthy financial habits and spend only on what is necessary. Eventually, you will realize that it is quite possible to have a healthy score, with minimal effort. You might soon learn what your spending limits are and stick to them. Even if credit card companies try to convince you to raise your limits, don’t do so as it will again tempt you into spending more than you can repay.

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