How To Improve Credit Score For Better Lifestyle In 5 Simple Steps
Credit score may just be another number mentioned somewhere on your credit report but it can do wonders. A good credit score means you can apply for better credit cards or qualify for loans on better terms. Ultimately, that means a happy, peaceful life ahead! So if you are struggling with a poor credit score right now, what are a few tips on how to improve your credit score for a better lifestyle? Well, we have you covered!
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- Clear Payments on Time To Avoid APR Charges:
If you are a cardholder who is currently struggling with maintaining a good credit score, making timely payments can help you a lot. Clearing bills before the due date can help you with two things.
First of all, it contributes the most towards a good score. Credit bureaus consider timely payments as one of the best indications of a reliable cardholder and the institutes will soon make sure that the behavior is reflected on your credit score.
Secondly, this would help you avoid interest charges and save money!
- Maintain a Low Credit Utilization Ratio:
Experts suggest that for a good credit report and this score, customers should always use less than 30% of the credit that is made available to them via credit card.
What happens if you don’t? There are many cardholders who spend complete credit limits but pay off the amount before the due date. Although they do not incur APR charges, the attitude shows that they are not financially stable and can not cater to their expenses without the bank’s loan. This is not healthy for your credit score!
- Do Not Apply For More Credit Cards
Whether you have an active account or more, it is best not to apply for multiple credit cards especially if your credit score is poor. Card application results in a hard inquiry that will further make your score take a dip. There are many offers that attract customers like Capital One Credit Card Offer in the mail. I am not saying it’s a bad offer, I am just saying.
In case you are in need of a credit card, pick your choice carefully. A good credit card can really help you improve your credit score fast but at the same time, it is not easy to find such a card with a less-than-average score. Do your research and only apply when you are sure.
- Keep a Check On Your Credit Report
Your credit spending habits are reflected clearly on the credit report. Therefore, if you wish to improve your score it is a good idea to regularly check the report whenever it is possible.
Credit bureaus assemble the report that you can access for free once a year. It is possible to obtain credit reports from three major credit bureaus separately. If you still want to check it again, there are a number of websites that generate a credit report for FREE.
- Dispute any Wrong Information That You Might Find On The Credit Report
Another advantage of keeping an eye on your credit report is that you would be able to track any information that may have been added by mistake. You may also be able to notice certain payments that have been cleared but are still being shown as pending on the report.
If you come across such data, you can immediately contact the authorities and request for rectification of the mistake.
Hopefully, these tips would help you improve your credit score for a better lifestyle. However, keep in mind that the change does not happen overnight. You would have to maintain good habits for at least a couple of months before you get to see positive results.
