How to Improve Your credit Score

Credit Score is like your credit reputation that helps financial institutions and banks to analyze your credibility and decide whether they should lend you money or not, if lending then how much money they should lend you. Even a single bad step will decrease your credit score significantly and you will face problem in future in getting any loan, credit cards or any financial help from banks and financial institutions.

Here are some tips to improve your credit score:

Make payment on time

Always pay your bills on-time, never be late, don’t miss… Pay by or before the due date. This is the most efficient way to keep your credit score on top. Every late payment will reduce your credit score. So, don’t delay payments. Set-up payment reminders so that you won’t miss your due dates.

No emotional purchasing

If going for loans, take what you can pay easily and on-time. Likewise, if you are out for shopping, do not do emotional purchasing of expensive goods. Else it will be difficult in paying back to the bank.

Cancel your unused cards

Now a days, people flaunts their cards of different banks just to show their status. If you are not using some of your cards, just get it cancelled. If those cards are stolen and used fraudulently, you will be in trouble. So, just to protect yourself and keep your credit score on higher level, keep only couple of cards or cards that your regularly use and cancel others.

Maintain account in your name

If you are a non-working spouse and the account is in your spouse’s name OR you are a student and using your parent’s account then start thinking of setting up your own account in your name. This will help you in building a good credit history.

Being patient

Even if your credit history got dent, you can improve it. Start paying debts on time, follow the above mentioned tips and gradually your credit score will go up. But it may take months to years so be patient – It’s like recreating your reputation all from the beginning.