4 Major Mistakes While Improving Credit Score
By Hope Lin


While improving credit score is one of the key factors to get you the decent interest rate on a new loan, most people tend to unconsciously make the following 4 major mistakes:

Consolidate debt / Transfer balance

You should not apply for a new account to consolidate debt, or do balance transfer by moving debt from high-credit-limit account to low-credit-limit account while trying to improve score, as it will dramatically increase the debt to credit limit ratio on a card. A rule of thumb: keep smaller balances on a few cards, instead of one big balance on one card.

Request for reduction on credit limits

This will increase your overall ratio on balances to your available credit, which can lower your scores easily. Unless your lender asks you to do so in order to get a loan, you don't ask for credit limit reduction.

Submit credit applications for new credits

Applying for new credits when you already have quite a few cards or loans can ding your scores to some degree. However, if you don't have any cards or just came out from bankruptcy, it's OK to apply for new credits to rebuild your credits.

Forget to pay the bills

One of the most important factors that your lender likes to take into consideration is your on-time payment history.Ê Always pay your bill ahead of time, if possible. Never want to pay at the last minute and end up seeing your payment is one day late. This is especially critical, if you are thinking about applying for a loan in the next 6 months.

Improving credit score is not that hard to do, as long as you are aware of these majorÊ mistakes and constantly remind yourself about it. Every mistake you can avoid, you get a chance to improve your credit score more. And if you can avoid all these major mistakes, you can definitely see the difference.

To learn more about improving credit score, visit http://quickcreditrepairhelp.com/improve-credit-score

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