5 Easy Ways to Improve credit score

Do you have a low credit score which is holding you back from getting approved for loans, credit cards or prime interest rates? 

you might wonder how to improve your credit score. While building or rebuilding your credit, it isn’t a quick process.

What is Credit score?

It is a three-digit number which lenders use to help them decide how likely it will be that the creditor will repay on time if they grant you a credit card or loan which is an important factor in the financial life. The higher your credit scores, the more probable you are eligible for loans and credit cards at the most favorable terms, which will save your money.

This three-digit number indicates your creditworthiness or the likelihood that you'll repay the money you borrow. The higher your credit score, the more likely it is you'll be approved for new and better credit. Here you will get to know the easiest way to improve credit score-

Steps how to get your credit score up-

Check the accuracy of credit report-

The first step for improving your credit score is to be aware of your credit history. A credit score shows credit payment patterns over a period of time. This three-digit number indicates your creditworthiness that you'll repay the money you borrow. Credit scores generally belong in the range from 300 to 850. The higher the credit score, the more likely that you'll be approved for new and better credit.

 Pay your bills on time

Your repayment of outstanding liability can have a substantial impact on your credit score This is why you need to be aware when it comes to paying EMIs and credit card dues. Delays in these payments will force you to pay a penalty, also it will decrease your credit score. So, if you find that this is something that you’re doing then you should set reminders for these payments so that you can be able to pay them on time and it will improve your credit score.

Fix your late payment-

If you have old outstanding amount, you should have to pay your bills in full, on time. Some credits reporting agencies don’t remove these if you not pay the dues on time, but you may be able to talk a creditor regarding this. One late payment can be forgiven or forgotten by creditors if you have a history of on-time payments and you call to discuss it with them. Repeated irresponsibility’s may require a little more effort on your part to have removed.

Often creditors will remove the negative mark from your credit report if you call and discuss something with them. You will need to get up to date your payments and it may be required to make a number of on-time payments before the negative mark is removed, but once happens then it will impact your credit score. But in the future, make sure that you should pay your bills on time.

Avoid Taking on Too Much Debt at One Time

You should take a minimum number of loans in a fixed period of time. First you should repay one loan then take another loan to keep your credit score better. If you take multiple loans at a single time, it will show that you are in a hard time where you have insufficient funds. As a result, your credit score may fall. On the other hand, if you take a single loan and repay it successfully, it will give your credit score a boost.

Don’t Apply for New Credit Card

You should try not to apply for a new credit card. If you already have old credit cards, you should continue to maintain them as long as you are able to pay your outstanding amount on time. This will help you build a strong credit history, which sequentially helps you to increase and maintain a good credit score in the future.

Your credit score is based on patterns on which you pay your bills over time, with an emphasis on more recent information. Improving and rebuilding a fallen credit score will take some patience, but it can be done! Credit scores can and do change.