by Floyd Dorrance

Not many people know if they have a good credit rating or if they have a bad credit rating. To know about your credit score, you can simply ask for it in several credit reporting agencies. They will be able to provide you with a numerical indicator of how much your credit rating rates and how much credit risk you are.

If the indicator says that you have a high score, this means that you have a good credit score, if you have a lower score, then it will indicate that you have a bad credit score and will be far more risky to get approved for loans.

So, if you have a bad credit rating, the first thing you need to do to improve your credit rating by takeing care of old debts. By paying all your old debts, this will stop the creditors from making negative reports to credit reporting agencies.

This is the first thing you have to do in. By cutting the source of negative credit reports, you will be well on your way to getting a good credit score.

However, paying all your debts doesn’t necessarily mean that you will instantly get good credit rating. You have to remember that this will just stop it from getting any worse. Your old bad credit score will still be there. So, obviously the next step would be to start looking for ways to make some positive reports on your credit rating.

You can do this by applying for a credit card that is designed for people who have bad credit rating, such as a secured credit card. You should also start opening a new savings account or checking account. Always remember that you should pay your balance on time in order for you to establish a positive credit report.

Eventually, your old bad credit score will expire in time. Always keep paying your debts on time and your credit history will look better than in the past. However, it will usually take around 5 to 7 years for your old credit report with negative reports to expire. This is why patience is very important.

With patience, you will see that in time, your credit score will rise and get rid of those negative reports that you had in the past. Always remember to keep paying your debts on time in order to continue to have a good credit score.

Of course, it’s impossible to put everything about “credit score” into just one article. But you can’t deny that you’ve just added to your understanding about “credit score”, and that’s time well spent.

About the Author
The author, Floyd Dorrance is a professional researcher of a variety of articles.

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