4 Tips To Make Your Credit Profile bright

Posted by pak yons on Wednesday, November 7, 2012

As a consumer, you need to learn the importance of establishing a good credit rating to the lender. Are you shopping for a new house, a car or find best deals on insurance, your credit worthiness will be judged by the credit score.

A bad credit history or bad credit habits will place, a "blacklist" on your credit profile. This includes things like late payments, having an account assigned to a collection agency and of course a bankruptcy.

You need to establish good credit habits for good credit rating will improve your credit worthiness. This will be reflected when potential lenders offering much lower interest rates and better deals on credit offers.

Here are 4 tips to make your credit profile shine:

1) Pay Your Bills On Time
Lenders only have your payment history in the past to determine what kind of credit risk you are. How do you pay off the debt at the present time will show them how you will pay off debts in the future.

2) Do not Use Credit Cards Too Much Or Too Little.
Many credit experts and financial planners suggest two to four credit cards is the exact composition.

3) Pay, at least the Minimum Payment.
Always pay at least the minimum payment but never less. And remember to only make the minimum payment means that you will take many years to pay off credit cards.

Example: Pay off credit of Rp.20 million payments with interest of 18% and a minimum monthly payment of 2% (Rp.400 thousand or less) will take 30 years to pay off the amount owed plus interest.

4) Check Your Credit Report Regularly.
Monitor credit reports regularly. Check your credit profile at least annually. Check carefully and make sure that any past mistakes or disputes have been corrected.

Also if you see the accounts listed, and note that it is not you who opened the account, contact your creditors and credit bureaus immediately. This could be a sign that your identity has been stolen. Submit a request to have the signal fraud on the profile and account to protect yourself and your credit. Identity theft is a crime of the fastest growing consumers in Indonesia with estimated 1 million people become victims each year.

Start a good credit habits in life and reap the benefits that a good credit rating will give you the financial benefits in the future.

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