5 things you can do to improve your credit score

Fist of all we need to know about the credit score…

What is a credit score?

A credit score is a number that recapitulates information from your credit reports. Score ranges are between 300 – 850. It will be best if the score is in higher range. Foreseeable credit score can be stated by lenders and other consortium appraise the customer based on his credit as well.

Where do credit scores come from?

There are 3 major credit bureaus (Experian, Transunion, and Equifax) your credit report contains information about loans and credit cards someone had in the past. If any applicant doesn’t have enough credit score lenders would have to spend their expedient for it.

If there something comes out like any mistake at applicants report then to estimate the actual credit score there is a computer model which analyze and generate a credit score.

There are different types of credit scores for different lending purposes. All those types of sources have more variations. It will be risk for the borrowers if the credit score will be less. Your credit utilization ratio measures how much the available credit someone using. You have to face a penalty if you are using a high proportion of the available credit.

It can take time to build credit, but if someone keep the payment mode right, the credit the score will automatically develop over time.

To help credit scores one should be careful about the closing of oldest credit card account. It shows the credit utilization ratio and credit history both. It should be kept in mind that every month there should be at least a small purchase.

There are difference between credit scores like if the credit score is 800+ its exceptional, if its above 740 its very good, If its above 650 its still good, score is fair if it is above 550 or 580 and estimated poor if it's under the above mentioned score.

Check Credit Score Online:

 It’s not very tough to check free credit score Online even there are some credit bureaus who credit scores for free. Credit card issuers sometimes provide free credit scores for customers and the lender can suggest the score when applying for a loan. Credit counselors may be able to provide a free credit score.

Also Read: Steps to Check credit score for free just in a few minutes

 5 Things We Can Do To Improve The Credit Score

May be someone had a low financial decision in the past and our credit score is the reflection of the reported credit history. Credit score changes if there any new information comes to add in the credit report. 

We must follow 5 ways to better our credit score…

1.Paybillsontime:                                                                                                                                                 

IF someone has a history of late payment need to start paying the bill within the time given

2. Review your credit report: 

Review your credit report regularly. If you find any mismatch in it report to the creditors. You can follow the FTC(Federal Trade Commission) website to get detailed steps for correcting errors.

3. Pay Down your credit balances:  

Don’t carry balances by not paying the credit card bill in full in the long term. Paying full can boost the credit score as well as credit history.

4. Use Credit:   

                                                                                                                                                  You need to use credit cards regularly, only spent as much as you can pay off. Long credit history is a factor to determine your credit score.

5.Monitor Your Credit Health Report:                                                                                                 

Check your credit reports regularly. It will help you to analyze account activity and immediately alert if there is any fraudulent activity. It will be better you review it on a weekly basis to make sure nothing missed out.

Re member Paying your bill on time and wisely and not using more credit is the main point to improve your score.

                       Download the app now to check your credit score for free!