A good credit score can help you get low rates on loans, credit cards with excellent benefits and perks, and insurance at competitive premiums, among other things. Given this, it is important to work on your credit score. Here’s what you can do to improve your score.
Check Your Credit Report
Your credit score is only a numeric representation of the data in your credit reports. So, it’s a good idea to check if there are any inaccuracies in your credit reports. If you do spot any errors, you can notify the credit reporting agency and get it removed from your report. This is the fastest way to improve your credit score.
Pay Your Bills on Time
The easiest way to get your credit score up is by paying all your bills on time. Keep in mind that payment defaults cause your credit score to dip, and it can also stay on your credit report for a few years. So, ensure that you make it a habit to pay all your bills within the due date.
Pay Twice in A Billing Cycle
Consider paying your bills every fortnight instead of once in a month. This reduces credit utilization and increases your credit score.
Don’t Apply for New Credit
Be extremely careful about opening new credit accounts, since creditors do a hard inquiry into your credit history before approving your application. This causes your score to dip. Having multiple credit accounts may also make repayments a hassle. So, avoid opening new credit accounts unless you absolutely have to.
Keep Old Credit Accounts Open
Old accounts contribute positively to your credit score since they add to your credit mix and the length of your credit accounts. So, try not to close these accounts.
Ask for An Increased Credit Limit
If you have a good relationship with your creditor and have had no problems with repayments in the past, you can ask your creditor to increase your credit limit. An increased credit limit can bring down your credit utilization and improve your score.
If your credit score isn’t where it should be, you are not alone. That said, following the above-mentioned tips can help you improve your score over time.
