5 Simple Strategies to Improve Your Credit Score

A good credit score has a lot of perks that will help you save money and make your life easier like getting the best interest rates and better chance for approval of credit cards, loans, rental houses and apartments.  Lastly, your borrowing capacity will also increase when they see that you have a good credit score.

However, achieving this isn’t quick and easy; especially if your current credit card situation isn’t looking that good (you know what I mean).  But don’t worry these simple strategies can help you boost your credit score over time.

1. Pay bills on time.

One of the major ingredients of a good credit score is a series of on-time payments; that’s why it is imperative that you never skip a payment or pay late if you want to don’t want to mess up your credit rating.

Set alarm or notifications to remind you of your due dates or if you know that you won’t be able to pay on time, contact your creditor to work out some arrangements.

2. Keep balances low.

Aside from good payment history, your credit card balance is also a major factor in your credit score.  If you want to improve your credit score, keep your balances low – 30% or lower.  Always remember to avoid maxing out your credit cards.

3. Pay off other credit card balances.

If you have a number of credit cards with small balances, it is strongly advised to eliminate other balances and just keep one or two credit card for everyday use.

4. Don’t close unused credit card accounts.

Even if you have already paid off your other balances and has stopped using them, just hold on to your accounts because having a long history of holding a card has a positive impact to your credit score.

5. Review your credit report.

Don’t become a victim of inaccuracies.  Always make it a habit to review your credit report to spot incorrect info, errors and omissions.  Report these errors right away so it can be fixed and removed as soon as possible.

If you are suffering from a bad credit, click HERE to read about the 5 Ways to Repair Credit.

5 Steps to Repair Credit


About Toni Marie

Toni is a regular contributing author on Guest Money Blog. In addition to writing about money topics, she also likes to write about relationships and health.
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