Banks and Credit Card companies are picky about who they wish to lend their money and only those with a clean credit history are offered good deals. Even insurance companies review credit history when deciding what to charge you for your insurance. Before applying for a loan, credit card or insurance it is important to review your credit score and do your best to improve it where possible. Even those that they possess a very good credit or loan history should perform a routine check of their credit files to make sure that all of the information is up to date and most importantly, accurate.

Here are some useful steps to improve your credit rating and credit score.

Build a Reputation
In order to attract more lenders, you must have a decent reputation which shows banks and credit card companies that you have a good track record of managing credit sensibly. If you are a 1st timer, one good advice is to take out a credit card at least 6 months before making a mortgage application. However it is important to make sure that you can pay off the required balance in each month, as well as on time, in order to avoid negative comments and a lower credit score.

Cancel Credit Cards that you don’t use
Another important way to improve your credit ratings and score is by cancelling credit cards that you do not use. Since most people quickly switch cards without making sure that they cancel old agreements. Even if you have no use for the card, because once these lines of credit on your files are noticed by any potential lender, it will make them reconsider their offers as they become wary about the size of your debts.

Avoid Missing Mortgage Payments
This is very often considered by lenders as a very big flaw as most banks, credit companies and lenders are more serious about your records of any missed mortgage. It is imperative that you make sure that you have all your mortgage payments under control, even if you are struggling to make the required payments, it is best to talk to your mortgage lender as soon as possible, because they may be able to help you refinance your loan if it is still in good standing.
These few tips will greatly help improve your credit ratings and score amongst potential lenders. Also it is best to keep all your credit history well organized and under careful observation to ensure accuracy.