If your credit score is less then it will be considered as very low and you may not be able to get approve for a loan or a credit card with reasonable rates and terms. So you may be wondering how you can improve your credit score. You may even have a reasonable credit score and still want to improve it as we all know that if we have a better credit score then we will have a better chance to get credit card or a loan with lower interest rate. There are a few simple steps which if you can follow; you will certainly be able to improve your credit score.
- Try to make all your payments on time. If you can make all your payments on time that will certainly help you to improve your credit score. So please don’t miss your monthly payments and better if you can make them on time.
- Don’t miss your payments. Even if you miss any payments then try to et current as soon as possible. Miss payments will certainly have negative affects on your credit score.
- If you have any problems in making the monthly payments then you should contact your lender as soon as possible. This may not help you to improve your credit score but this will certain help you to manage your credit better.
- Try to pay off your debts rather than moving it around. If you have huge debts and paying it regularly then it is the best way to improve your credit score.
- Don’t open too many accounts if you can’t maintain it and also don’t close your old accounts. Closing old accounts signifies of your credit unworthiness.
- Try to Contact Your Creditors : Do this immediately to set up a payment plan if you miss payment deadlines and can’t afford your monthly bills. Quickly addressing your problem can ease the negative effects of late payments and high outstanding balances
- Avoid Too Much Debt at One Time : The number of loans you take in a fixed period of time should be minimal. Repay one loan and then take another to keep your credit score from crashing. If you take multiple loans at once, it will show that you are in an unforgiving cycle where you have insufficient funds.
- Debt Consolidation Plan : There could be a temporary drop in your credit score if you enroll in a debt consolidation program, but as long as you make on-time payments, your score quickly improves and you are eliminating the debt that got you in trouble to start with.
If you follow these steps you can significantly improve your Credit Score !!!!