A low credit score can affect your life in more ways than you might think — which is why it’s important to maintain the highest score possible.
If your credit score is less than optimal, here are the most effective ways to help you increase that number:
Review your credit report. Look for and report any errors to TransUnion, Experian and Equifax.
Be responsible. Payment history is the most important facet of your credit score — so always pay those bills on time!
Get additional credit cards. Doing this will increase your total available credit limit, which increases your score.
Maintain a low credit utilization ratio. Owning a large number of credit cards only helps your credit score when you under-utilize them. If possible, never use more than 30% of your total available credit — and if you can keep it to 15%, even better!
Raise your credit limit. You can also keep your credit utilization ratio low by asking your credit card lenders to raise your credit limit — just don’t go out and use it!
Don’t close existing cards. Closing a card lowers your available credit, which lowers — you guessed it — your credit utilization ratio.
Photo Credit: GotCredit
I pay cash and my score keeps declining!
You are much better paying on credit and then repaying your credit card in full.
Informative write up to improve on credit score, though it has been surveyed that maximum of the people are struggling to make their finances better & at the same making their credit history a better one, so that they can easily apply for loans. But applying our common sense added with proper budgeting helps in dealing any financial challenges with ease.
Thomas Z, You are sabotaging your own credit score. Get a United Airlines credit card (My favorite card) and sign up for their Mileage Plus club which is free. OR SIGN UP FOR ANY OTHER CREDIT CARD. Charge everything for which you would normally pay cash and then TWICE A MONTHGO ONLINE AND PAY OFF THE BALANCE FROM YOUR SAVINGS. Never buy an item unless you have the cash to pay for it. Pay off the card twice a month in advance, pay the balance in full each time so you never pay interest. WATCH YOUR CREDIT SCORE CLIMB TO DIZZYING HEIGHTS.