How To Improve Your Credit Score?
Yes our friend, your credit score is one of the necessary aspects of your financial portfolio. Most people devote a lot of their time examining their assets such as real estate, investments and bank balances but meanwhile, they fail to think about their liabilities. Never forget that every lender checks your credit score before working with you. Hence, it is very important to do your part of research & figure out some good ways to enhance your credit score
Here are 5 ways that will help you to improve your credit score:
1) Pay Off All Your Bills On Time
Primarily, a credit bureau uses this element to determine your credit score. All the lenders are worried about whether you will be able to clear your payment on time or not. And they measure your ability to pay by examining your past track record. On that basis, lenders will trust you for the future.
2) Keep New Credit Request To A Limit
Often, people lower their credit score by requesting new credits. Probably, most lenders find this as an indication that you are so much desperate for money. If soon you want a credit score, then you should avoid requesting new credits. The least you can do is limit your requests!!
Read More: Best 5 Free Credit Score & Monitoring
3) Increase Your Credit History
No doubt, this is one of the largest barriers for many people who are starting. You should know that a long credit history simply means that more lenders will comfortably rely on your history to examine your credit-worthiness.
4) Try To Lower Your Credit Balances
It is always suggested that a person should always keep the borrowing amount at/below 25% of his/her available balance.
In simple words, if a person has a credit limit of $1,000 on his credit card, then he should have $250 as the balance. This also applies to all types of revolving accounts.
5) Utilize Revolving & Installment Debt
You should have a good mix of revolving (credit cards) as well as installment (car loans, mortgage) kind of credit.
So, always remember that your credit score is not everything. But it is not a bad idea to follow the discussed five ways to make up your credit score.
You can slowly begin to enhance your credit score with time!!!