How to improve your credit rating

Tips For Improving Your Credit Rating

Don't do damage to your credit rating. Be careful in these areas:

Take the time to turn your contract over, read the fine print, and ask questions about what you are getting into. Easier to do this before you borrow money than afterwards.

Your debt-to-income ratio is key to getting a good FICO credit score.

Rearrange your monthly bills to allow yourself to pay down more than your monthly minimums on your credit card payments.

Don't fall victim to aggressive loan offers and fabulous credit card offers you receive in the mail.

The annual percentage rate on a loan -- not the introductory rate or payment -- determines how much you will pay for that loan.

Prepayment penalties can cost you money. Negotiate them out of your contract, as you might be able to save money by refinancing or paying off your loan early.

Furniture wears out. Cars too. Financing your purchases longer than the items last is a bad idea.