Ways to Improve Your Credit Score

What is your credit score? Do you know how to increase your credit score?

Let’s look at the following article to find out the exact way to increase your credit score.

 

Increase Credit Score

Increase Credit Score

Many people think that they don’t have a credit score yet. However, it turns out if you have a bank account or have applied for a loan, credit card, KTA (Unsecured Credit) and so on, you actually already have a credit score.

But, do you know what a credit score is? Credit score is the value given to each individual or debtor.

The purpose of a credit score is to be used by the creditor in determining the ability of the debtor or prospective debtor to fulfill their responsibilities and determine the credit that they submit.

Credit scores are important. Why is the credit score important? Because your credit score will affect when you want to apply for a loan. If your credit score is good, of course you will also get many benefits, you know.

A good credit score can help you to get a loan more easily. In addition, the interest on loans given to you can also be lower. That means the risk that you bear becomes smaller. Very profitable right?

However, if your credit score is low then you are indicated to be at high risk. The loan interest rate given to you will be higher. It’s even more likely that your loan application will be rejected.

The credit score usually ranges from 300-850. If the credit score is above 720, it indicates a safe zone. Whereas a score below 640 can make it difficult for you to get a loan.

Therefore, you need to increase your credit score. How do you increase your credit score? let’s see how.

 

5 Ways to Improve Credit Score

5 Ways to Improve Credit Score

This time the Bobbsey Twins rubric will share the right way to increase your credit score. So, you can more easily get loans and of course with lower interest rates.

Here are 5 precise ways to increase your credit score:

Fixing Existing Errors

The first thing you need to do before increasing your credit score is to ensure that your credit report information is accurate. You must check if there is an error in writing an address or account that is not yours.

If there is incorrect information, then you should immediately contact your credit report company. To ensure that your data is always correct and accurate, you are recommended to carry out this inspection at least once a year.

This examination needs to be done so that you avoid prolonged problems.

 

Not Making a New Credit Card

New Credit Card

Usually, the higher your credit score, the more credit card offers that come to you. With various offers that might be of interest to you, you should limit the number of your credit cards. You can only have 1-4 credit cards.

If you now have more than 4 credit cards, then you should reduce some credit cards that you don’t use. Don’t be easily tempted by existing credit card offers.

 

Make Automatic Payments

Because it’s too busy, usually many people forget to pay their credit card bills. As a result they become late paying bills. In fact, if it’s too late to pay, it will affect their credit score.

Especially if added to the fine imposed for late payment. Surely Ada doesn’t want to be like that right?

Therefore, one way to avoid late bill payments is to set up automatic payments for your bills.

At present, almost all banks have the “bill payment” feature. This feature can make it easier for you to manage payments repeatedly. You can see your credit card billing history. Then, write down the bill due date on a separate sheet of paper.

However, you also have to make sure that you have a good understanding of your cash flow. This is useful to find out how much money is left each month.

You can use the amount of money left over to pay for additional credit cards.

 

Adjust the Billing Date

payment date

Everyone has different payment cycles. Therefore, you need to adjust your bill due date with a date that makes it easy for you.

If the date of your bill falls before your payday date, you can try to change your payment date.

Although changing the date of payment is not easy or even impossible. However, it doesn’t hurt if you try it.

 

Don’t Use Excessive Credit Cards

You must ensure that the utilization of your credit card is less than 30%. If you use credit more than 30%, this can give the impression that you are experiencing financial difficulties.

Try not to rely on your credit card when shopping everyday.

It’s better if you use a debit card. If you use a debit card, it will make you less inclined to do impulse buying.

What is impulse buying ? Impulse buying is an unplanned decision to buy goods or services.

To find out more about impulse buying you can read Bobbsey Twins articles about impulse buying .

 

Success in Increasing Credit Score

Success in Increasing Credit Score

After knowing how to improve your credit score, of course you can now apply these methods to increase your credit score.

If your credit score is high, you can get loans more easily and with lower interest rates. Good financial management will also greatly help you in increasing your credit score.

However, of course increasing credit scores cannot be done overnight. Therefore, you need to do the exact method above regularly.

By doing the right way routinely and doing good financial habits, surely you will get a good credit score.

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