Tips To Boost Your Credit Score and Stay On the Top
Credit score is a three–digit number generated on the basis of your credit report. Most of the lenders judge the financial stability of a person through their credit scores. A FICO credit score ranging within 720 to 800 is considered to be a good credit score. A high credit score will help you to avail loans at better rate of interest.
Generally your credit score are dependent on the following factors:
- Your payment history
- Duration of your credit history
- New lines of credit
- Types of credit you have availed in the past
- The amount you owe to your creditors
Ways to Improve Your Credit Score
Usually most of the lenders rely on credit reports generated by the three major credit bureaus – Experian, Equifax and TransUnion. So, it is important that you go through your credit report to ensure that the information provided by these bureaus is accurate. Here are some important points which you need to take into consideration to boost your credit score.
- Check for the errors in your credit report and if you find any discrepancies, request the bureaus to correct these errors.
- Pay off your bills on time. Paying off your credit card bills, mortgages or other installment loans will help your credit score.
- Minimize the usage of your credit cards. Use it to pay only necessary utility bills like water, gas and electricity.
- Keep a check at your credit limits. You should try to use 35% or less of your credit line. This will help you to keep your balances low. Postpone availing any new lines of credit and pay off your debts as soon as possible.
- Do not close your current accounts which show good payment history. Even if you pay off your debts, it is not advisable to close your accounts. An account open for a longer period of time with no negative remarks helps to improve your credit score.
These are some of the tips which will help you to improve your credit score. It is advisable to use your credit wisely. A good credit score can only be achieved through regular payments and keeping your expenses under control.
This article is written by creditadvisor who is a community member of the creditmagic.org community.
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