When it comes to measuring your financial health, credit score plays an essential role. A lender always takes a glance at your credit score whenever you look forward to borrowing a loan. If a lender finds that you have a good credit score, they give a loan instantly. In case your credit score is terrible, it becomes difficult to get a loan.
Well, if you have a bad credit score, then also it is nothing to worry about. You can always improve your credit score, and there are many tips and tricks to help you do that. So, if you are wondering how to improve your credit score, this post is all you need to go through.
Here, we will tell you all the tips & tricks to improve your credit score. So, read on and know it all.
Tips to improve credit score
Many people have no idea to know their credit score is. If you are one of those people, you must understand that there are many online free platforms where you can find your credit score. Once you know your credit score and find that it is not as high as you expected, then you can use various tips and tricks to improve one.
Review the credit report
If you are looking for ways to improve your credit score, you must always start by checking your credit history. Find a credit report online and look into it thoroughly. A few factors that help improve the credit report include the low balance on your credit card, history of timely payment, the mix of your loan amount and credit cards, and many more.
Make timely payments
Since your payment history profoundly affects your credit score, you must avoid delaying payments. To make sure that you make payments timely, start by setting a reminder. Setting a reminder will help you in making payments right on time, and you will end up paying the amount in full without any delay.
Making timely payments will help you improve your credit score, which will eventually help you borrow a loan in the future.
Consider paying more than once in a billing cycle
We know that it might not be financially comfortable for all of you to pay more than once in a billing cycle. Still, if you can manage to make payments every two weeks, there is nothing better you can do to improve your credit score.
Making payments twice or more in a billing cycle will help you lower your credit utilization, which eventually helps in building your credit score better. You may also improve your credit utilization ratio by asking for a credit limit increase by updating your income online.
Choose longer tenure while taking a loan
One of the easiest ways to increase your credit score is by choosing a long tenure to repay the loan. A longer tenure helps you with lower EMI each month which will ensure that you do not miss any payments, and your credit score will improve.
Track your progress by credit monitoring
One of the simplest ways to track your progress is by using credit monitoring services. Usually, most of these credit services are free, and you can easily monitor your progress or changes in your credit history by using the same. Besides improving your credit score, credit monitoring can help you prevent any fraud and theft identity.
Do not close old accounts
Keeping the old accounts open helps with your credit age. The more credit age you have, the better will be your credit score. In case you have any old credit accounts that you no longer use, do not close them. If you choose to close the old credit accounts, the credit history remains on your credit report. So, consider keeping your old accounts open to maintain a better credit score.
How much time does it take to build a credit score?
Usually, it is a matter of 3 to 6 months to see any change in your credit score. Still, there is no specific time to improve one. If you wish to improve your credit score as fast as you can, then you must avoid making late payments, getting your credit cards maxed out, going bankrupt, etc. Make sure that you do not avoid any payment. This is very important to remember because late payments hugely impact your credit score.
Wrapping it up
A good credit score is essential to improve your purchasing and buying power. Make sure that you keep your credit score high, and you will never have to worry about getting approved to borrow loans anytime in the future. Now that you know the tips and tricks to improve your credit score, we hope that you will be able to do the needful.