Credit Score: People are always worried about their credit score. Is their credit score correct? Can they get a loan, how can it be increased if the score is low? In this story, we will try to answer these questions. No matter what your credit score is, you can adopt some methods and increase it up to 100 points. Although it may take some time, but these remedies are effective.
First know how much your credit report is?
Before knowing the ways to increase your credit score, you have to know your score. For this, you can ask for your credit report from all three major credit bureau equipment, experience and transunion through its official website annualcreditreport.com. There is no mistake in the report, so watch it carefully. Such as accounts that you have never opened up or payments that have been incorrectly labeled as delayed payment. If such mistakes are removed, your score can improve rapidly. Along with this, you should also pay attention to what is your current score, so that you can monitor the improvement in it over time.
Pay bills on time
Your payment history plays the biggest role in your credit score. Its contribution to improving credit scores is around 35%. Let us know that if you miss a bill on time, it also affects your credit score and your score can be spoiled. Therefore, take care to pay every bill like credit card, EMI on time. You can do it without doing it by using an automatic payment or reminder.
Reduce your credit use ratio
One way to improve your credit score is that you use your credit card only for a limit. Credit score also depends on what percentage of your credit you are using. This is called credit use ratio. Most experts recommend keeping this percentage less than 30%. If your use is more than this, you can increase your score by decreasing it. Lack of balance of balance can reveal lenders that you are not at risk of high credit that affects you on credit scores.
Avoid increasing credit limit
Nowadays people take many things on EMI. This blocks a large part of your credit limit. If it is not possible for you to pay it quickly, then another way to reduce the use of your credit limit is to increase your credit limit. Call your credit card -issuing bank and ask them to increase their limit. However, after this you have to pay special attention that you are not used for a limit or else you can also be in financial crisis.
Take a new credit card only when needed
Opening a lot of new accounts simultaneously can lead to many hard inquiry on your credit report, which can reduce your score temporarily. If you need to apply for a new credit, give a certain time gap between your applications. By the way, your credit history also plays a big role in your score. If the credit cards that are not charged and not used in use are not charging the annual fee from you, do not stop the old accounts and keep using them from time to time to keep the accounts operational.
However, even after all these measures, the credit score takes time to improve. For this, payment on time is most important. You can gradually improve your credit score by making positive changes such as timely payment, low credit use and smart credit management. If you adopt all these measures in a smooth manner, within six months you can have a jump of 100 points in your credit score.