Your credit rating is an important measure that you have to keep track off. A bad credit rating could spell trouble in the long run, so it’s best to avoid it as much as possible. However, if you do manage to acquire a bad credit rating then all is not lost. It’s best to consult a financial adviser but there are also a number of key thing to bear in mind yourself too…

Check Your Credit Card Report

It’s important that you should keep a close eye on your credit score. You can do this by requesting a report and checking for errors. Sometimes a bad credit score can be the result of miscalculations by others. Take responsibility yourself for making sure yours is accurate and challenge anything you don’t find to be correct.

Keep Your Balances Below 30%

Your credit card balance helps to determine your credit score. And a higher monthly balance can mean a lower rating. That’s why it’s best to keep your balance to a minimum. If you have managed to already acquire a bad credit rating, don’t fret. The process is still the same: pay your monthly balance and keep it below 30% to improve your score.

Go To a Credit Counselor

If you’re still having trouble paying your debts, approach your creditor or go to a credit counselor and ask for assistance. This will not improve your credit rating right away, but it will help you plan for a healthier long-term financial future.

Open New Accounts Only When Needed

This will drastically improve your credit rate, and fewer accounts will look better on your record. A long history of good credit will look good on your credit reports – it’s all about proving you are sound and reliable and able to manage your finances effectively.

Secured Cards

You can snap up credit cards for bad credit as part of a drive to boost your score. It’s important to make a sensible choice though. Picking a secured credit card can be a smart choice. These can be a useful way to start a steady programme of paying off your debts at a sensible interest rate. As you chip away at the payments your credit score will improve.

Calendar

Whether it’s digitally or with old-fashioned pen and paper, you need to develop a calendar to track your bills and payments. Keep a close eye on everything that goes in and out and make sure you’re aware of the dates that big payments are due to come out. Proper planning will stop you getting caught out and will help you make informed financial choices.

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