Six Ways to Raise Your Credit Score

Raising your credit score can be one of the best decisions you might ever take to improve your finances. With a high credit score, you can enjoy privileges such as reduced interest rates on loans as well as credit card rewards. Attaining an excellent credit score is not a challenging task with good credit habits. Discussed below are ways to raise your credit score.improve your credit score

Get a credit card

A credit card is a tool that will help you build your credit but only when used correctly. Using the credit card for purchases and paying the bills before the due date will help build your credit. Note that you should avoid missing or making any late payments to sidestep the interest backlash.


Keep balances low

If its impossible to pay off your credit card bill every year, your aim should be to keep the balances as low as possible. Most folks are not aware that approximately thirty percent off their credit score is dependent on the amounts owed or credit utilization. If you wish to have a high credit score, you should have a ratio of ten percent. For instance, if your credit limit is $ 20000 and you are using $ 10000 of it, your credit utilization ratio is fifty percent. This is too high. The lower the percentage, the better.

Raise credit limit

If you are unable to pay off your credit cards completely every month or have a high credit utilization ratio, then increasing your credit limits on your credit cards is another way of improving your credit score. Raising your credit will let your utilization ratio to fall if you don’t use it to obtain more credit card debt.

Check credit card report and fix errors

Credit card reports contain many errors. However, the sad news is that after receiving annual credit reports, many people don’t review their report properly. If you spot closed accounts, credit limits or other errors on your credit card report, you should dispute them immediately. Otherwise, you risk lowering your credit score.

Make payments on time

credit scoreIf you have a loan, don’t delay when it comes to repaying it. Make sure that you put your finances together and review all your accounts to assure they are up to date. Any late payment will reflect on your credit report for a given duration and will lower your credit score significantly. If you have any accounts present on your credit report that are currently past their due date, its worth noting that you should bring them to current status if you wish to rebuild your credit. Afterwards, you will need to make all your payments on time. Your payment history will make a major role when it comes to defining your credit score.

Include paid debts on credit report

If you have completed paying old debts, it’s not bad to add them to your credit report. For instance, if it was a car loan then it will provide a track record of how you handled and paid the debt, which is good for your credit.