How to Increase Your Credit Rating by Paying Your Credit Card Bills on Time By Joseph Feross At Isnare.com Ezine Articles

Paying your credit card bills on time each month is the best way to repair your overall credit and keep you credit worthy and in good standing with lenders. There are several ways to increase your credit rating so that it will be easier for you to walk in to a bank or apply online for a credit card and receive an approval and a good lending rate.

If you pay most of your credit cards online each month be advised that there is an allotted time that many credit card companies require you to pay days in advance for the payment to post on or before the due date. Failure to make the payment before the due date will result in a late payment and applicable fees and charges will be applied to your credit card balance. The more payments you make late, the harder it will be to repair your credit down the road with that credit card company. Until you are familiar with each company’s policies with paying online, make sure you allow up to a week in advance for your payment to reach the credit card company before you pay each month.

Make sure that when you pay your bills in person you pay them on or before the due date. Failing to do so will result in having to repair your credit further down the road. The effects of not paying your bills on time will have ramifications that will last month’s even years.

Mail in your payment up to ten days before the due date to avoid late fees and to assure that the bill arrives on time and can be processed by the lender in the proper allotted time. One way to repair your credit is by making sure that the payments you mail in are enough to pay the full balance down or at least make sure they include minimum payment amount.

Pay down high end balances every month to ensure that your credit rating stays high. If you are unable to do this, try paying your minimum amount with an amount that is more than the finance charge each month, although this won’t eliminate finance charges it will make it feel like you are paying down your balance a little faster than just making a minimum payment each month and not getting your balance lowered as fast as you would like. By making a short term goal of paying down high end balances each month you will ensure not having to repair your credit down the road and by doing that you will increase your credit rating.

If you happen to miss a payment or the payment gets sent out late, the first thing you should do is to call your lenders for help; this will help to repair your credit. Many times if you are a good standing customer, they will waive the late fee so your balance stays within its limit.

By avoiding having a derogatory mark on your credit report, this will lead to properly repairing your credit so you can have more leverage with lenders.

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