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    1 Reply Latest reply on Jul 22, 2009 1:27 PM by phanio

    How should I go about raising my credit rating?

    AndrewHall Newbie
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      <!endif-->I am an engineer working in US;
      during my college I raked so many bills with my credit cards. I began paying
      all of it, and propose to pay them of, nevertheless. I am quite young and preparing
      to get settled soon, I am sure that my credit rating is low and that loan will
      be quite tough for me or any finance for even the essential stuff. So, I need
      suggestions on this…. kindly help.
        • Re: How should I go about raising my credit rating?
          phanio Pioneer
          I would suggest that you do it yourself and not pay anyone else to do it for you. To improve your credit - make sure that you make all your minimum payments on time and as agreed. It is even better to pay more than the minimum. Also, if you pay off revolving credit like a credit card, do not close the account - leave it open just don't use or only use it once every three or four months then pay it off immediately. The reason is that these reporting agencies look at how much credit you have available compared to how much you use. If you have $5,000 available and use 100% of it - they think you cannot manage your credit and your score lowers.

          Also, make sure you have several different trade lines - at least one revolving, one term and one optional like a store charge account of cell phone bill - this is a minimum. If you don't have these - I would suggest you get them but do so under a secure loan meaning - take some cash - like $500 - get a term loan or credit card based on that $500 (you will secure the loan or card with the cash) - then make a payment or two - then use the funds to pay it off. This will show that you can manage credit without defualt.

          Lastly, it takes time. These agencies also look at how long you have been using credit properly - thus it takes time. But, if you pay your accounts as agreed and don't overspend using your credit - your score will rise over time.

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