Amazing Ways to Improve your Credit Score

By Dr. Kavita

Your credit score is a crucial factor that can be a determining factor in so many things in your life. Having to live with poor credit score is nothing short of a nightmare because you start realizing that a major part of your financial life gets limited and restricted.

Thankfully you do not have to go through your entire life bemoaning a poor credit score. Here are some amazing ways to improve your credit score, and regain your life back again.

Click here to compare 0% APR credit card offers and save 100s. Free comparison tools.

Double check for errors

It is amazing how common it is for errors to creep up in to your credit score and demolish your credit score for no reason of yours. The payment history of your credit card and other dues makes up for almost 35 % of your credit score. If this gets riddled with errors then your credit score can take a nosedive.

According to FICO, the commonest reason for errors in payment history is when there is an identity theft or interchanging of credit report details with someone who shares your name. So always check your credit report for errors and intimate the credit reporting agency so that they can get the errors rectified. Rectification of errors will improve your credit score in a huge way.

Pay your bills more than once a month

Most credit card users wait until the end of the month or the last day of the grace period to pay their outstanding dues. Even if you are paying all your outstanding bills without keeping any balance, still you may be hurting your credit score.

Click here to compare 0% APR credit card offers and save 100s. Free comparison tools.

This is because the report is sent to the credit bureau on a day that is chosen by the bank and not on the day after you complete your payment. In case you make a payment after the report is sent to the bureau, then it reflects your outstanding balance and this contributes towards a poor credit score.

So always try to pay your bills in two or three divided installments throughout the month.

Use less of credit

Even though your credit card comes with a certain spending limit, it is not necessary to make use of that entire amount every month. Suppose your credit limit is $ 5000, do not use a credit of the entire $ 5000. Instead aim for a safe amount like 10 % of your limit, which is equal to $ 500. Using more of your available credit hurts your credit score, so avoid doing that.

Keep your cards active

Sometimes people think it is safer to totally avoid using the credit cards, in order to improve their credit score. But beware of doing this as an unused credit card is a reason for a poor credit score. Instead of total avoidance of credit card usage, use it wisely (use the card no more than 10 % of the credit limit) and build your credit score by proving to the reporting bureaus that you know how to handle your debts responsibly.

Click here to compare 0% APR credit card offers and save 100s. Free comparison tools.