A credit score is a three-digit number with the help of which lender can detect borrower’s past repayment history and can easily determine whether the borrower pays his loan on time or not. The higher the score is the more you are likely to qualify for loans and credit cards. Hence if your credit score is low then you will have less chance to get the loans or credit cards. That is the reason why it becomes very essential to improve your credit score fast.
Ways to improve your credit score
There are various ways with the help of which you will be able to improve your credit score. The following are some actions that you need to do for improving your credit score:
Paying Bill on time
Every lender wants to lend money to those persons who repay their bill on time. The past payment history matters a lot and if you positively pay all your bills on time on every month then your credit score will remain good. Hence, if you want keep your credit good then apart from credit card bills you have pay other bills such as phone bill, utility bill, water bill, electricity bill, etc. on time.
Keep your balance low
The credit card utilization ratio is an essential thing that needs to be observed in credit score calculation. Generally, credit score on the credit card is calculated by adding the balance of credit card at any particular point of time and dividing the total amount by total credit limit. You can increase your credit score on your credit card by paying off debt and keeping your credit card balance as low as possible.
Apply for one only when required
If you want to improve your credit score then you should not keep any unnecessary credit card or account. Unnecessary credit may totally harm your credit score. Apart from that, it raises unnecessary inquiries from the lender’s side when a person wants to borrow money. Having too many credit cards will always make you tempting to overspend and this way it will accumulate debt on you.
Do not close an unused credit card
As long as your unused credit card are not charging any fees there is no need to use it anymore or close it. If you try to close your unused credit card it may increase the ratio of your credit card utilization. It is always better to have a less credit card but have a high credit limit.
Check the inaccuracies on your credit card
You must check the report of your credit card from any three credit report bureaus so that you can make sure that there are no inaccuracies. If there is any incorrect information on your credit report then it will drag your score down. Hence, you should monitor your credit card scores on a regular basis so that if there are any inaccuracies you can correct those otherwise it will damage your credit score.