Today, improving your credit score can be one of the most important things you can do. This is because you can never be certain about tomorrow, and the financial burden that may weigh down on you. It is always to have a good credit score to enable you to qualify for loans and other credit services when you need them. If you want to have a good credit score, there are a lot of things you may have to consider. A financial institution will offer you credit facilities depending on your credit score. The higher your credit score, the higher the amount you qualify to borrow.
How to improve your credit score
Make payments on time
Paying your bills on time will not only foster a good relationship between you and your financial institutions but also guarantee you credit facilities when you need them in the future. Most of the credit facilities offered will be based on how punctual you are to paying your bills. Paying your bills late will be costly on you in terms fines and interest rate. Creditors will mostly avoid those who pay their bills late as it’s a clear indication that they can be a financial risk to the institution. Pay your bills as soon as you get them, and have a personal calendar as a reminder to help keep you up to date.
Borrow what you need only
Applying for a higher amount more that what you need will have consequences on you later. It’s a good feeling to have extra cash at the time you borrow, but it’s another when it comes to paying them. Mostly you will find it hard to keep up with the payments especially if you have multiple credit cards. You will have to exercise self-discipline when it comes to borrowing.
Know your credit report
A credit report will mostly focus on what credit agencies say about your credit scores. This is usually considered as a soft credit inquiry and will not have a major impact on how you are rated regarding credit score. Monitor and follow up on your credit reports. This is important as you will be able to know where you fall and in a case of an issue, you can challenge and dispute inaccurate information if you notice any.
Limit your credit card utilization
This is usually the available percentage of credit utilization you are using. Avoid using your credit card more often to avoid debt and the pressure of having to fall back in payments of bills. Calculate your utilization, and divide the balances in relation to the amount of credit limit you qualify for. Avoid using your credit card more often as doing so, will influence the decisions that financial institution makes when issuing out loans and other credit facilities to its customers.…Read more