Credit scores are just like test scores; both fueled by effort. For test scores, the more hours you put into studying to understand the subject, the more chances of getting a high score. As for credit scores, the more effort you put in paying back loans on time and consistently, the better of a score you get. Here are some assured methods of boosting your credit score.
Pay Loans on Time
Be sure to always pay your debts on time. This is because delays will only cost you to get a bad credit score. A good rule of thumb is to ensure you have paid at least five days before the due date. It will ensure that you remain on the good side of credit for future borrowing opportunities. If possible, set payment reminders that will prompt you when payment is almost due.
One is encouraged to borrow funds that they are absolutely capable of repaying. This practice is a habit people should maintain to allow them to pay back the borrowed money on time, with little to no difficulties.
Pay More in One Cycle
If you are servicing a monthly loan and can afford to pay more than once in a month, then do so. This action significantly lowers your credit utilization and boosts your score.
Avoid Closing Unused Credit Cards
When it comes to credit, the age of your credit matters a lot. It is encouraged that you’d rather close new credit cards than closing old ones.
Don’t Pay Charged-Off Debts
You may be in the habit of continually paying your debt. Sometimes you forget when you have completely settled the loan and continue paying. If you make a payment like this, it usually reactivates the debt and in turn, lowers your credit score.
If you have several credit cards in which you have all borrowed money. It is vital to start paying off debts of the credit card that is closer to its credit card limit. This will bring down your credit utilization rate.
Sparingly Apply for New Credit Cards
It’s essential that you manage your credit cards to a minimum. It can harm your score if you apply for several cards in a short period.
If you are stuck on how to get your credit score up, be sure to read, internalize and apply the points mentioned above. The aforementioned information is useful in boosting your credit card score.