There is no secret method to obtaining a good credit rating. Even if you are unable to achieve a very high credit score, it is possible to maintain a good rating by simply paying creditors on time. Late payments and skipped payments can decrease your score by several points. If irregular payments become a habit, your credit score will continue to decline.

On the same line of thought, making regular payments will increase your credit rating. When outlining a plan for boosting credit rating, begin by paying all creditors on time. If possible, submit payments a few days before the due date.

Reduce Debts and Keep Low Balances:

Too much debt will have a negative effect on your credit rating. Most consumers with maxed out credit cards are able to keep up with minimum payments. However, excessive debts make potential lenders nervous. In this case, it may be difficult to obtain prime rates on home loans and auto loans.

Low credit card balances will not have a damaging effect on your credit rating. Consumers are encouraged to keep credit balances below 25% of the credit limit. If your balance exceeds this amount, take the necessary steps to reduce debts. This may include paying triple the minimum payments, transferring the balance to a 0% interest credit card, or obtaining a debt consolidation.

Ways to Protect Credit Rating:

In addition to boosting your personal credit rating, careful credit report monitoring is essential. Sadly, millions of people become a victim of identity theft each year. Proving identity theft is difficult. Thus, victims often have to live with the effects of having their identity stolen.

Here you can read 3 tips to raise your credit score.