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Tips for improving your credit history

Nov 10, 2011
We advise our clients to access multiple lenders, find and compare credit terms and only then decide with which of them to take the credit.
An important thing you should do in the beginning is to raise your credit score.The most important credit rule reads as follows: pay your bills on time, keep your credit balances as low as possible, avoid late payments, and use credit only when necessary. People who always follows such a law usually have excellent credit performance. This means that they are quite conservative with credit and have a cautious approach to use other people's money. Credit is not a toy, and so toying with it should not become a hobby.
If you have a debt, an important step towards the dramatic improvement of your credit account is the repayment of the debt (in credit language it is called 'reducing the credit balance'). It is clear that you cannot do it in one day. But if you focus on the partial repayment of your debts, then in a couple of months you will be able to add 20 points to your credit history.
There is a separate talk about late payments. Not all people know that some credit card companies do not register late payments after 30 days, but only after 60. Although this extra month could act in your favor, it does not mean that you should let your payment be 30 or 60 days late. A regular prompt payment on credit accounts will keep your credit score at a good level.
Let's talk about a common misconception. Many people mistakenly believe that closing credit cards will automatically lead to improved credit history. It will not. On the contrary, in some cases it can render you a bad service. Moreover, if you are thinking to reduce the amount of your credit line, NEVER do that.

If you close a credit card that you received as a student and leave the card which you received only recently, in the eyes of the lenders you will look like just another inexperienced borrower. Therefore, we advise to always leave at least one old credit card, no matter what high interest rates you have on it.

As you can see, there are many steps you can take yourself, and others where you can can benefit from experts' help. Turning to the office of Capitol Investors Property Management, you will receive detailed advice on these issues and even recommendations for good specialists to help you with concrete actions.

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