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How To Improve Your Credit File

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When you find your credit file on a rather unsightly situation, do not worry, there are ways to make things better. You can easily improve that credit score relatively quick. Those with bad credit scores or poor rating can immediately see and experience good results which can lead to a much better deal on your borrowing. Even people with better credit can surely benefit from the easy to follow tips.

Practice Frequent Payments
You can always do micro-payments or small payments spread all over the month to ensure your credit card balances are kept down. You can also work with your credit card like it is a debit card where you can pay online as soon as you see your transaction posted. The several small payments you make on a month will work better to your advantage which they refer to as credit utilization, this has a great bearing on your score. When you keep your utilisation low, instead of allowing it to balloon to the next due date, you will surely get a better scoring immediately.

Ask for higher credit limits
As your credit limit go up, but your balance stay the same, this will help lower your credit utilization. In this case, call your credit card provider and ask for a higher credit limit. 

Dispute and report any errors on your credit file

Mistakes on your credit reports can be dragging down your scores. You can get free reports later every 12 months. You can request for these reports and check them for any errors, like payments that were marked late when you have settled on time, or any negative information that are too old to be even listed in your credit file. When these errors are finally removed, your credit score will most likely improve.

Do not close your credit cards
If you wish to improve your credit file, then do not close down your credit cards. Closing your credit card means that you have lost your credit limit after credit utilization has been computed and this can lead to a low score. Keep it and use it from time to time so the provider will not close it.

Be an authorized user
Ask for your friend or relative with good credit standing and high credit limit, to include you as supplement and authorized user. He or she does not have to let you use your card or let you know the account number. This is ideal for those with no to little credit background and experience, but its impact is highly significant. It can beef up your credit file.

Mix it all up
Try not to have only credit card loans, but do use some other loans. You have to consider getting a car loan, home loan, etc. Make sure they are on instalment options so you can make a set of equal payments over time and a revolving credit. This way you choose how much exactly you wish to pay just so you can improve your status and creditworthiness as a borrower.

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