How To Improve Your Credit Score

Have you been having trouble with loan or credit card applications? Your credit score is likely suffering and you’ll need to improve it if you want a higher likelihood of approval and good rates from lenders. There are several things you can do to make your credit score better, but keep in mind, that the change will not happen over a short period of time. You need some time and effort before you can see an improvement in your credit score but it’s well worth it afterwards.

Any sudden changes in your spending or paying habits will alert your lender that you may potentially be in a crisis which could result to financial problems. Avoid doing things that can potentially harm your credit score later on such as: using your card more than usual in a short period of time, making a payment that’s less than your usual amount, skipping a payment, or getting cash advances.

Pay off balances on multiple credit cards

If you have a number of small balances on most of your credit cards, this can also adversely affect your credit score. Pay off all these small balances and then afterwards decide on a single card which you will use from now on for all small transactions like these.

Always pay your bills on or before the due date

Ensure that you’re always consistently paying all of your bills on time. The late charge might not mean much to you but this impact will be seen on your credit report and credit score. Even if this doesn’t happen often or you were only a few days late, this will still be considered a late payment.

Don’t worry about past debts on your credit report

Past debts still showing up on your credit report even though you’re already done paying might be unpleasant for you to see but this doesn’t have to alarm you. There’s no need to have these past debts removed from your credit report. In fact, it’s good for your credit history because it’s considered proof that you pay off your debts.

Apply for loans within a short period of time

When applying to several institutions for a large loan such as for a home or car, this can have longer repercussions on your credit score. However, if you make these inquiries altogether within days or weeks, it will not affect your credit much since they will be considered as applications for a single loan.

Keep your credit card balances low

As much as you can, quickly pay off any outstanding balance on your credit cards or ensure that your balances are at a minimal amount. Another excellent way to manage your credit cards is to get a single personal loan to pay for all the existing balances on your credit cards.

  • December 2, 2017