When getting a loan or bpi credit cards, you need a credit score that will convince the licensed money lender that you are creditworthy. Credit scores reflects your credit history and how you have been as a borrower. It shows the level of risk the lender might take.
Here are some ways to make your credit score look good:
Never miss paying a bill. Pay on time because missed payments will be reflected on your credit history and it will affect your credit score big time.
Keep your credit card balance low. Charge on things that you can actually pay with your current cash inflow. Make sure it won’t be an outstanding debt.
Only open credit accounts when you really need them. Don’t open one if you think it will make your credit history seem good. A lot of credit accounts in short successions might make the lender think that you are always in debt.
It is better that you pay off the debt. Some people move around the debt to be able to seem that they can pay the debt, but actually this is not good for the credit score.
Make sure that all your credit information are safe against identity theft.
There is no short cut in fixing your credit score. Pay the ones you need to pay and wait.
Here are some facts about your credit score:
Credit score is based on your credit report updated by your lender. Make sure they update accurately and includes your on time payments.
Closing two accounts does not always mean a better credit score. It will still depend on available credit and balance to limit ratio.
Money lenders assess your credit worthiness base on your credit history. They have the right to have a copy and so do you.
You can’t start over your credit score, but you can improve it by rebuilding the credit history though it will take time.
If you are trying to open new credit accounts, it will be reflected as inquiries which the lenders will see.
Inquiries remain in your credit history for two years while delinquencies take seven years.
Unpaid tax and bankruptcy may remain in 10 years before it will be cleared out from your credit history.