Your credit score is an important indicator of your financial health. A higher credit score can increase your chances of getting approved for loans easily. However, if your credit score is lower than the average score, don’t worry! There are several steps you can take to improve it effectively. Here’s a step-by-step guide to help boost your credit score:
First of all, let’s understand which score range can be considered as good. Here is quick answer for it.
- 300 to 560: Poor
- 561 to 659: Fair
- 660 to 724: Good
- 725 to 759: Very good
- 760 to 900: Excellent
Boost Your Credit Score with these simple steps
1. Pay Your Bills on Time: Your payment history is a major factor in your credit score, so it is recommended to pay your credit bills on time, even mobile phone bills as well because every month a deep report is sent to credit bureaus from different sources and unpaid bills can significantly impact on your credit scores.
Tips to pay bills on time are simple and quick.
- Set calendar reminders to pay credit card bills on time. You can do it after you use your credit card for anything like groceries, phone bills and so more.
- As many credit card companies offer an amazing feature called ‘auto-deposit’, setting it up can be helpful to pay bills automatically before the due date.
- Many companies offer e-mail and text alerts, and you can on this setting in your banking app. It will remind you about the credit bill due date.
2. Check Your Credit Report: It is one of the other main factors in managing your financial health. Equifax, Experian, and TransUnion are the leading sources in this field to check your credit report. By doing it regularly you can spot an error and detect frauds.
3. Reduce Your Credit Card Balances: keeping credit card balances below 30% will be profitable, as when it is below this value it shows lenders that you are using it responsibly, also it will be easier for you to pay a small amount on time than a big amount.
Tips to keep balance below 30%
- Monitoring your balance is important to ensure that it is below 30%
- You can use multiple credit cards in case of high usage than 30%. But ensure that usage of every card is below this value.
Improving your credit score from low to high takes time and effort, but by following these simple steps and practicing good credit habits, you can boost your credit score and improve your financial future.