5 Tips to Improve your Credit Rating from Insta-Credit Auto Mart St Louis

As the economy continues to recover, your credit rating may have taken a hit. Your credit score may need a much-needed boost. Perhaps your credit rating is good, but you want to raise your credit rating even more. Here are 5 tips that will help you achieve your desired credit score.

Tip #1: First things first: find out your current credit score.  Knowledge is power and as painful as it may be, knowing your credit rating is the first step to managing and improving your numbers. Reviewing your report will allow you to check for any errors or inconsistencies. Also, knowing your credit score will help you find out where you are being penalized. Perhaps you may need to pay your bills on time. Maybe you are using too much of your available credit. In order to find out your credit score, there are three reporting agencies you can refer to: Equifax, Experian, and TransUnion.  You can also request a free copy of your credit report annually.

Tip #2: Automate as many payments as possible. Having a mix of paper and electronic copies can lead to confusion, shuffled papers, and late--or worse--missed payments. Setting up automatic withdrawals from your checking or savings accounts for car, mortgage, and utility payments will save stamps, save trees, and simplify your life by eliminating clutter. Also, making automatic payments will help you avoid additional late fees, and paying your bills on time is an easy way to increase your credit score. You can also have your bank notify you via email or text if your checking account is below a certain amount to avoid overdrafts.

Tip #3: Maintain a low balance on your credit cards. Ideally, using a small percentage of your credit card balance will increase your score. Some experts claim that less than 25 percent is ideal, other reports have mentioned 10 percent or even 4 percent. The idea is that a low balance on your credit card will result in an improved credit score.  Conversely, maxing out your credit cards will result in a lower number on your report, and you will be paying additional interest and overage fees. Also, it is wise to limit the number of credit cards that you have.

Tip #4:  Another way to improve your credit is to take a loan out on your vehicle. This is a simple and easy process. Visit a bank or credit union and check to see if there is a low-interest payment plan. You can transfer a high-interest credit card to a low-interest loan. As a result, you will pay off your debt faster, keep a low credit card balance, and improve your credit score by showing that you have paid off debt . You could also stop by Insta-Credit Auto Mart one of the best buy here pay here dealers st louis has to offer.

Tip #5: Seek credit counseling. If you are confused and unsure where to start, no worries! A credit counselor can provide guidance, hope, and insight in order to manage your credit and raise your score, so you will be on your way to financial freedom.