How is your health? Most of us do something healthy during the day. Perhaps we eat a salad at dinnertime, or walk the dog after eating that dinner. Maybe we get a good workout at the gym from time to time, or sometimes try to order baked or grilled chicken at restaurants, instead of the fried variety. The bottom line is that staying healthy requires us to make a conscious, consistent effort. Good health should become a lifestyle.
Likewise, we should ensure that our credit rating is also healthy. A good credit rating becomes instrumental when you need to take out an automobile loan or a mortgage for your home. Of course, you could still avail of unsecured loans, but the interest rates alone could be high enough to give you a coronary. If your goal is to improve your credit rating and eligible for credit cards with low apr, here are some tips to get you started:
1. Examine what determines good and bad credit
The key to "good" and "bad" credit is the credit rating system. Lenders often use your credit rating to determine whether they will issue you a loan or a line of credit. In the U.S., the three primary credit rating issues are Equifax, Experian, and TransUnion. Typically, lenders will secure at least two credit reports on an individual, to get a broader view of the person’s credit.
These agencies issue a FICO score, which ranges from 300-900. A score 900 means that the person presents essentially no risk to the lender. Meanwhile, a score of 300 means that you should consider asking your Aunt Bertha for a loan.
How will a FICO score affect your chance of landing a loan? In general, particular benchmark scores will likely produce the following results:
- FICO score of 500: Lenders will refuse you a line of credit or will give you a loan with sky-high interest rates and strict terms.
- FICO score of 650: A lender would offer you a loan with decent terms, and a new line of credit.
- FICO score of 850: This score and above should be your target, if you want to become eligible for low fixed interest credit cards.
Acquiring and tracking your credit rating has become easier than ever. Many states offer free credit reports from the major agencies. Furthermore, several organizations allow you to access your credit rating online, making it easier to track.
2. Give your bills a clean bill of health
As you might expect, being delinquent on bill payments and collection can have a drastically negative effect on your FICO score. Make sure to pay your bills on time. My friend once gave me the some wise advice: "Do not regret what you have done. Regret what you have not done." There is no yesterday or tomorrow. You can start catching up on your bills TODAY, and improve your credit score. That said, keep in mind even after paying off a collection account, it will remain on your credit report.
3. Seek the help of a qualified, independent credit counselor
Improving your credit score will not happen in one day. However, with the right guidance, you will be able to manage your credit better; and within time, your credit score will begin to rise.
4. Do not let revolving credit get away from you
Revolving credit, such as credit cards, does not involve a fixed number of payments. However, it is highly inadvisable to delay paying your credit card bills, pay the minimum amount due, or move your credit around. Instead, consolidate your debt and pay off the balance as soon as you can. That will improve your credit rating and boots the chance that financial companies will later approve you for the best low interest credit card.
5. Do not use your plastic for plastic credit fixes
To improve your FICO score and improve the chance that credit card companies will approve you for low interest credit cards, pay down the balance. Opening new credit card accounts and closing unused credit card accounts will not produce a positive long-term effect on your credit rating.
6. Manage credit slowly but surely
In the case that you have managed credit for only a short amount of time, do not quickly open many accounts. This could seem risky to lenders. It could also lower your chances of landing a low interest credit card, such as a low interest business credit card, in the future. Here is how the reason. New accounts cause your average account age to drop. If you have a small amount of credit data, this will have a larger impact on your credit score.
Tags: low interest business credit card | low interest business credit card | low fixed interest credit cards | low fixed interest credit cards | best low interest credit card | best low interest credit card | credit cards with low apr | credit cards with low apr | low interest credit cards | low interest credit cards