Aim High With An Excellent Credit Score

Credit scores are cloaked in an air of mystery. People think they know how to secure a high rating, only to discover that when they apply for a home loan or wish to take out a credit card, they are refused or have to make do with less favorable deals or rates. A solid credit score can open up financial doors that can make your life easier. 700 is the magic number and anything over 800 means you are considered one of the most responsible borrowers out there. Take a look at these simple ways of achieving the highest credit rating you possibly can.

Settle Down

If you require a strong credit score because you’re thinking of applying for a mortgage for the first time, it’s important that you have been relatively settled for the past couple of years. Lenders and credit referencing agencies don’t tend to look favorably on those people who have moved around the country staying at a different address every three or four months. This flightiness worries them because they feel it may be translated into your financial situation. Try and stay put for at least twelve months before you need to apply for any form of credit. This will enhance your credit score and make you seem less of a financial risk.

Pay Your Bills

Whether it’s an electricity bill, a cell phone bill or a credit card payment, you need to ensure that you cough up on time. A late, or worse still a missed payment or two or three, will ring major alarm bells and show up on your credit report. The easiest way to combat this if you’re not adept at managing your finances is to set up direct debits. This way, your payment will be taken out of your account without you having to lift a finger.

Get Your Debt In Order

Debt can be a good thing. If you are within 25% of your credit allowance, you’re paying above the minimum payment, and you only have one credit card, a credit referencing agency will view you as a responsible borrower. However, if you are stretched financially and struggling to keep up with your debt repayments, you need to think about venturing onto a site like consolidate.loan to investigate the option of merging your debts into one monthly repayment. Here, you’ll be able to check out the reviews of specialist companies that consolidate your debts for you making them easier to manage. As your financial health begins to recover, so will your credit score.

Keep On Top Of Your Report

It is now easy and cheap to check your credit score online. Register with experian.com and receive free notifications when there is a change to your credit report. By monitoring your credit rating, you will get a feel for the sorts of things that affect your score. You can also dispute the negative marks against your report if you don’t think they should be there and attempt to get them removed.

By following these tips and being aware of your financial situation, you will be able to strive for the highest credit score that you can reach.