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    Tips To Improve Your Credit Score

    By InvestMe | October 26, 2016

    Tips for improving credit score

    ways of improving credit score

    Improving your credit score would not be an easy task. You have to patient and wait and take slow and steady steps for improving your credit score. Improving your credit score is not like a car race, the fast you go, closer you will be to the win. You cannot get instant result while improving your credit score. Take some actions continue with that actions and then wait patiently to get the result. While improving your credit score, your past record is also taken into account and hence if your past record is not very much attractive then you have to work hard and wait bit long to reach to the specified level. The best tip for improving to improve your credit score is that make the right moves and remain consistent on them. Here are some of the tips for improving your credit score.

    One of the major factor of improving your credit score is how much revolving credit you are having how much you are actually using, lower the percentage of this better will be your credit score. The average percentage for this is 30 or lower than that. For improving your credit score, you must pay down all your balances and try to keep your balances always low. You might not know but even if you pay full balances every month, you still have as higher utilization ratio than what you are expecting you would have.  This is because some of the issuers use this balance on your statement as per the one which is reported to the bureau. Even when you are paying the balances in full each and every month, your credit score will be still weighing your monthly balances. One of the strategies is to see that the credit card issuer will be accepting multiple payments through the whole month.

    A good way for improving your credit score is to eliminate with the nuisance balances. These are the small balances which you have on number of credit cards. One of the items which your score will consider is that how many of card has balances. By doing so 50$ will be charged on one card and 30$ will be charged on another card instead of using the same card. This will help you save some dollars and will also improve your credit score. One of the another solution to improve your credit score is to collect all the credit cards on which you have small balances and pay all of them. Then choose one or two cards which can use for almost everything. By doing this you will not pollute your credit report with lots and lots of balances and will also create positive impact on your credit score.

    Some people firmly believe that old debt on the credit report is bad on their credit score.  The minute, they get their car paid off or their home paid off; they are in a hurry to get it removed from their credit report as soon as possible. Yes of course negative item are bad for your credit score but most of them will be removed from your credit report in seven years. But this does not mean you should argue to get your old accounts settled off just because they are paid. If you had debt in past and you have paid it off well then it is considered as good debt and it is good for your credit score. Hence showing off such good debt inn your credit report will improve your credit score instead of deteriorating your credit score. This will showe your regular debt repayment capacity and hence it is advisable to let your old accounts remain on your credit score as it will improve your credit score.

    If you are planning any major purchase then you might be accumulating a big chunk of cash. When you are planning for purchase you don’t want your regular payment of bills to suffer because of this. Even if you have lots and lots of savings, a minor delay or default in making regular payment of bills can drop your credit score. Hence when you are trying to improve your credit score, make sure to pay all your bills in time without any kind of delay due to any reason. Credit score is determined on the base of your credit report. If you are bad in paying bills or let’s say paying bills in time, it can damage your credit score instead of improving your credit score. This can also extend to those items which are not usually associated with credit reporting like library books. This is because even the original creditor which is librarian doesn’t make report to the bureaus; they can eventually call in any collection agency for unpaid bill. That agency can also list these items on your credit score. This will leave a negative impact in improving your credit score. Saving money for any big purchase is smart but don’t skip your regular payments for that.

    When you are working for improving your credit score, you should be ultra-focused on that. When you know you are going to need money, cut back your spending habits and use your credit card wisely. This smart spending behavior will also reflect in improving your credit score. When you are planning to make a big purchase, get a copy of your credit report and check whether you can go for it at this stage or not. Your credit report is also very much important in getting you any loan from banks and financial institutions and hence improving your credit score is very much important. Even your credit score plays a major role in getting any advances or getting money from lenders and hence improve your credit score at its utmost level for better financial performance.

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