How can I improve my credit rating? : To answer the question "How can I improve my credit rating?" You should know how to calculate your credit. In general, there are five main factors that will participate in the calculation of your credit: payment history, amounts owed, length of credit history, loan type and obtaining a new loan. What do these terms mean and how they affect your credit in detail in subsequent paragraphs. Payment history. Record all the missed payments. If you have made payment, but it was late and did not arrive before the date of payment, the payment will be marked on your payment history. The amount of debt. The amount owed is calculated on all outstanding loans. Remains of all outstanding amounts from all credit cards at any time will be mentioned in this article. For example, if the total debt is only half of the amount of your approved credit limit, you get more points on your loan than those who have exhausted all of their credit limit. Length of credit history. The general rule - the longer you work with the bank, the greater time and a large amount of the bank you can give credit. There is every reason to believe that those who used the loan for several years, will be regarded as better customers than those who just received their first loan or credit received only two or three months ago. That is why appropriate, do not close all your old bills, and leave at least one, even if you do not use it, and thus you save the record of your credit history. Type of credit. Lenders need to see that you are using a variety of loans and take loans in different places. For example, if you have a mortgage on a car or mortgage on real estate, and you have two or three credit cards, then it will improve your score. The new loan. This is the last figure of the five factors used to calculate an overall score of your credit. An indicator of this factor is the number of credits that you would get, and the number of credits that have been made available. Finally, also worth noting that some of the five above-mentioned factors may have a greater impact on your score than others. In fact, they were listed in order of importance. Payment history makes up 35% of your points, 30% of the amount owed, length of credit history 15%, the type of credit and new loans to 10%. You may notice that the regular repayment of the loan within the specified time frame makes the greatest contribution to improving your credit score.