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Most banks provide their customers with an option to increase their credit card limits. This will help you improve your credit utilization ratio which is the percentage of credit limits you have used and will ultimately boost your credit score. If your bank insists on further enquiries regarding your credit card before providing you with an option to increase your limit, then refuse the option as a “hard check” on your card may harm your credit scores in various ways.
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I? y??’?? ????? ?????? ?????? ????? ?? y??? ???? ???????? ????’? ????? ????????, ??’? ???? ???? ?? ??????? y??? credit score so that you can get the best financing options. Here are some methods to help you enhance y??? ?????? ????? ?? ???? y?? ???’? ??? ???????? ?? ??? future:
Accurate Credit Report It’s hard to see a? F o? your ?redit report a?d e?e? harder ?he? you k?o? you deser?e a? A. Therefore, it’s ?ery i?porta?t that you regularly check your credit reports. Studies have shown that there is a 1 in 5 chance your credit report could have mistakes on it. Get the free copy of your credit report you are entitled to and make sure that all the i?for?atio? is a??urate so that your ?redit s?ore is?’t incorrect.
Get a Credit Card So?eti?es this is?’t so o??ious, ?ut if you do?’t o?? a ?redit ?ard, you may end up having a bad credit score due to an uneven mix of accounts in your name. You may also choose to have a secured credit card, which helps keep your credit card bills under control. With a secured credit card, you need to deposit a certain sum of money. This will act as the credit limit for your credit card and will prevent you from overspending.
Credit Line Increase Most banks provide their customers with an option to increase their credit card limits. This will help you improve your credit utilization ratio which is the percentage of credit limits you have used and will ultimately boost your credit score. If your bank insists on further enquiries regarding your credit card before providing you with an option to increase your limit, then refuse the optio? as a ?hard ?he?k? o? your ?ard ?ay har? your ?redit s?ores i? various ways.
Pay Your Debts Regularly Increasing your credit card limits will help you increase the denominator of your credit utilization ratio. To further enhance this ratio, which also improves your credit score, you need to reduce the numerator as well. This can be achieved by paying off your debts in a timely fashion. This will also ensure that you have to pay lesser amount of interest as your debt is reducing due to the payments.
Collection Account Clearance At times, your debt collector may stop wanting to report your debts to your credit bureau if you offer to pay back the whole amount of money at one go. Before you approach your debt collector, make sure this is legal; some debt collectors have agreements with credit bureaus to report back your debts under all circumstances. This should be kept as one of the last resorts in the process ofimproving your bad credit score, in case all others fail.
Stop Applying Although most institutions will provide you with tempting credit options, and provide you with various offers to apply for additional credit cards, it may not be a good idea to always indulge in such offers. It is true that the more credit cards you have the higher your credit score can be, but a hard credit enquiry may cause damage in such cases. In case you are applying for a lot of credit cards in a short span of time you may end up in more trouble than less trouble.
