Ways to Improve your Credit Score

Ways to Improve Your Credit Score The credit score of an individual is one of the most important measures of financial health. At a single glance, it allows the lenders to know how responsibly you are using the credit. The better your score is, the easier you might get loan approvals for lines of credit or new loans. A higher credit score is known to open doors to the lowest rates of interest when you tend to borrow. If you would like to improve the overall credit score, there are several simple steps that you can execute on a regular basis. While it is going to take some time or some efforts on your end, the results are going to be fruitful. For your overall ease, we have summarized a few important pointers that will help you to improve the overall credit score:

• Monitor the Credit Score & Report: As per a study report, it is observed that most individuals tend to have errors on the respective credit reports. The given errors can have major impacts on the overall credit scores. As a result, this could drastically reduce the overall chances of refinancing the home, qualifying for some mortgage, or getting approval for the other vital credit products.

• When you tend to monitor the respective credit reports while checking them regularly, you can catch up with common errors like inaccurate bill payments that might have been made on time or outdated personal information.

• Pay the Bills on Time: One of the most important factors that tend to impact the credit score is the individual payment history. Payment history is known to account for around 35 percent of the overall credit score. When you are making the minimum payments on time, irrespective of how big or small the payment is going to be, you are going to make some of the best contributions towards making sure that the credit score remains impressive.

• Maintain a Low Balance: Credit bureaus are known to maintain a proper track of credit utilization ratio while using the same to calculate the overall credit score. The credit utilization ratio is known to measure the percentage of the total credit that has been made available to the users. Both lenders as well as credit unions are known to not prefer observing higher utilization ratios. As per the experts, it is recommended that you should aim at keeping the balances on the credit cards along with other debts below 30 percent of your credit limit.

• Keep the Old Credit Accounts Open: The overall duration for which the credit history remains active tends to have a direct impact on the respective credit score. Therefore, it is crucial to keep & maintain old credit cards along with other credit accounts open given the fact that they happen to be in good standing. Even if you have a poor credit score, you can look forward to improving the same by around 100 to 200 points by following some important steps.