Do you want to improve your credit score? Thinking how you can do that?
We know that a bad credit score hurts the chances of you getting a loan and credit approval. A bad credit score can affect whether you will get an apartment on rent or if you will get the job that you have recently applied for, basically everything essential in your life. This makes it important that you keep a high credit score and always strive to improve it. Here are a few ways by which you can improve your Credit Score in no time at all!
Don’t miss the payment dates
One of the biggest cause of dipping credit score is the missed payments or delayed payments. Make sure that you keep a reminder of the due date of your loan payments and always meet these payments on time. Make sure you sort your expenses of the month in a way that you would not be short on the loan payment money. This is crucial because one missed or delayed payment will result in a dip in your credit score and it would take 7 years for this missed payment to be removed from your credit report.
Pay your bills on time
Make sure you pay all your bills and tickets on time. If you have some parking tickets or library tickets, make sure you pay them too else an account will be created by you and this would be displayed on your credit report too. Paying bills late and not paying parking tickets can cause a huge dip in your credit report which will take a lot of time to be removed.
Avoid taking multiple loans in a short duration
Make sure that you keep at least 8- 10 before applying for a new loan because every time you apply for a loan, it reduces your credit score. This is because, for every loan, an inquiry is made by the credit which is noted down in your credit report and affects your score. So, if you have too many inquiries in a short period of time, then your credit score will suffer tremendously.
Pay one credit card balance at a time
If you have more than one credit card, then getting rid of all the credit payments at the same time could be a little overwhelming. However, this doesn’t mean you can pay off those credit card payments one by one. Take one credit card at a time and clear the dues. You can also transfer your credit card payment from a high-interest credit card to a low-interest credit card so that you have only one credit card payment to make.
Keep a low credit card balance
Make sure that you always keep your credit card balance to less than 30%. This is a safe limit and will not affect your credit score at all. If you have a lower credit card balance, then your credit score might further dip down.