Your credit score states your financial health. It gives a perfect idea to the lender how well or responsibly you use credit. The better will be your score, the easier it will be for you to get approval for loan or credit. A high credit score can open up the door for a low-interest rate. If your credit history is not stable where you want it to be, you can improve your credit score. Improving the credit score can take time, but the sooner you will address this issue, the faster your credit score will rise.
There are a number of simple ways to improve your credit score –
To improve your credit score, you should check your credit score online. Once you get the score, you will have all the information about the factors that affect your credit score. These factors can help you make and understand the changes done by you. Some of the credit scores are quite important than the other ones. The credit score shows the payment pattern over time.
The following action will help you to improve your credit score over time –
Make bill payments on time
When the lender reviews your credit reports, they are quite interested to know how reliable you are to pay your bills. As old payment performance is considered as a good foreteller of future performance. You can influence the credit score by paying your bills on time. Paying your bills late can affect your credit score. Missed or late payment can appear as negative information, but their impact declines with time.
Get credit for making cell phone and utility payments
You can improve your credit score by factoring the payments you make using the free product by the CPN tradeline package. This CPN tradeline will help the user to connect their bank account utility and telephone payment history. Once the user verifies the data and confirms it to the CPN credit file, an update will be given in real-time.
Keep the balance low on your credit card
Credit utilization ratio is also an important factor in the calculation of credit score. It is calculated by adding all the card balance and then dividing that amount with your card’s total limit. To track out your average credit ratio, you should look at your card statement. Add all the statement balances for every month and divide it by 12. People with a good credit score will have a meager credit utilization ratio. Low credit utilization shows that you have not maxed out the credit card limit, and you know how to manage the credit well.
Open a new credit account only when it’s needed
Never open a credit account just to have the right credit mix. It will not improve your credit score. Unnecessary credit can hamper your credit score in a number of ways. It can end up creating too many hard inquiries on your card.
Don’t close your unused credit card.
You can keep your unused cards as long as they do not cost you any money in annual fees. It is a smart strategy because closing an account can increase your credit utilization ratio.