How to Improve your Credit Score?

In this day and age having a decent credit rating can open many doors and also allow for cheaper financing for your various projects, whether it is buying a car or embarking on purchasing your first home. Unfortunately many do not know the fact that if your credit rating is poor you Will be penalized by many a financial institution by paying a higher rate of interest for the financial products that you are vying for.

These are some important pointers to help you go in the right direction and to put matter straight about ways to improve your credit score and rating which will help alleviate a lot of the misconceptions and confusion that surrounds getting a good credit rating.

1. If you are late on your monthly credit payment make sure you never exceed a thirty day limit as over a third of your credit score is assessed through late payments so if for example you don't pay your credit card bill within the thirty day grace period that will affect your credit score.

2. Never cancel your credit cards, even if you never use them any more as they count towards your credit history so keeping them, even not in use works to your benefit. Your credit history determines approximately 15% of your credit score so this is a point to remember.

3. Even if you are a cash buying sort of person, try to have at least one credit card under our belt that you use occasionally, even if you pay off the balance as this gives Lenders the ability to assess you as a future client. If you have never had credit then there is no yard stick in which to assess you so this will work in your favor.

4. DO NOT go to the other extreme by applying for a plethora of credit simultaneously as this will ring alarm bells and will make it seem like you are going through a financial crisis and need bailing out through borrowing. This will have a really negative effect on your ability to get future credit for the items you really need.

5. If you have children try to get them into a habit of managing money by issuing them with a prepaid debit or credit card and get them to learn to budget early as this will help them for when they will need to be even more responsible during adulthood.

6. Only get your credit score through the main government credit bureaus as there are many scam programs online offering you a free credit report when they are NOT at all free.

7. Do not wit hold information about your credit or try to make falsify anything that may be related to your credit rating as you can actually be penalized with court action as it is an illegal activity.

Keeping these few tips in mind can perhaps save you thousands of dollars in the future when you apply for credit for larger items.