Best Ways to Improve Credit Scores
Your credit score plays a big role in your life right now. Well, it’s basically becoming more and
more important in our daily lives because it determines whether you are worthy or not for a loan,
a house, a car or even your job. But that doesn’t stop there; you’re credit score has a lot more to
offer in terms of saving money. A good credit score which measures from 680 to 850 would give
you a better and smaller interest rate compared to having a score of 679 and below. You can
actually save hundreds or even thousands of dollars with a smaller interest rate.
These are the most common yet sure-fire ways to improve your credit score.
You won’t be able to gain points if you don’t use your card. So yes, you got that right,
use your card. But remember to use it wisely and responsibly, you don’t want to get
carried away and pay for a huge balance with a low score in the end right? Your card, if
not use will be up for closure. It won’t do your score any good and at the same time
you’ll have a hard time opening or reopening another one. If you’re going to use your
credit, make sure to stay 20-30% below it. Not exceeding your limit and staying below it
shows that you have control and that you are financially responsible.
Check your credit scores regularly. Get a copy of your credit report every 3-4 months. If
you can track errors or false claims on your report, the better. It’s because errors in your
report can hurt your score, it can even affect future transactions. It takes time to get
them removed so moving quickly about it can really save your credit.
Your bills are made to be paid on time. Missing on it has a huge consequence for your
credit score. It will leave a mark on your record that will stay for 7 to 10 years. You can’t
remove them just by finishing off your balances that’s why it is really advisable to pay
your bills on time and regularly. If you have extra money, try to shelf out a bigger amount
for your balances. It gives your score a boost and you’ll be able to finish it off faster too.
There are more ways for you to boost your credit score. Just remember that having a credit
requires discipline and effort. Do the basics and you’ll surely have a healthier credit in no time?