How To Obtain An Optimal Credit Score?

Posted on September 20, 2016 By

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Today, people have more awareness about credit rating and credit score. This is the reason, why more people are looking information on credit rating. In general, people aim to acquire highest possible credit score. But how much high your credit rating should be for getting loans? The truth is that you do not need to get the highest credit score. It is enough to attain the good credit score range, which can satisfy the requirements of the banks and lenders. A credit score of 850 on FICO can be considered as highest best. But in reality, it is highly impossible to achieve such high score, even though you have good credit history.

It is better to aim at reaching the credit score of 760 on the FICO. This score is enough to prove your credibility before the banks and financial lenders. Getting credit above 760 is not going to offer additional benefits. Now let us look into the ways for maintaining an optimal credit score. Paying the financial dues and bills on time is the best way to maintain a good credit rating. Paying the bills on time will keep your credit history clean and spotless. When your credit history is clean, your credit rating automatically increases.

You should never cancel your credit card to boost your credit rating. Even though you have paid your credit card bills on time, you should never cancel it abruptly. This is because your credit score is also calculated based on the credit available to you. When you cancel your credit card, you no more have the available credit money. Therefore, you should have the credit card, even though you do not have any dues.

If you are suffering from poor credit score due to the multiple credit cards, then you should try to communicate with the credit card lenders. Remember that, credit card lenders are always after money and they are willing to settle the debt issues smoothly. You can ask the lenders for some better deals. When striking deals, you should check how the lenders report the settlement to the credit bureaus. If the lenders report “paying as agreed”, then it helps to improve your credit score. Else, if they report “not paying as agreed”, it will negatively impact your credit score.

If you are unable to obtain a credit card due to poor credit rating, then you should consider obtaining a secure credit card. This type of credit card is available for everyone, irrespective of credit score. What is more important is that you need to apply for the credit cards, which informs to all the credit bureaus. Buying a credit card, which does not send a report to credit bureaus will not help in benefitting your credit report.

Sometimes, you may have bad credit rating due to the errors in calculations. Many people have found errors in their credit rating and credit history. Therefore, check your credit report for errors. If any errors found, you should take action to correct them immediately. By fixing a mistake, you can quickly increase your credit rating. By following the above tips, you would be able to achieve better credit rating.

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