A credit score is a 3 digit number that expresses a person’s creditworthiness. A credit score is mostly used when you want to get a loan.
Various factors determine your credit scores. For example, how quickly you make your payments affect your credit score. Being able to pay your pending bills on time will make your credit score desirable. The number of accounts that you have will also affect your credit scores in one way or the other.
It is important to ensure that you make your credit score good so that it can be easier to work with banks and lenders.
There are simple ways you improve your credit score to be in the best condition.
You must ensure all the credit cards that you are not in use are left open. There is no cost incurred in keeping your credit cards open. When you close your account there is the likelihood of getting negative credit reports which will then affect your credit scores.
Delay on paying your bills may affect your credit scores in a big way. It is important to ensure that you pay your bills on time so that you can fix your credit score. You will have a positive credit report when you ensure bills are paid on time. This will show your reliability on paying your debts when you get a loan from lenders.
You may sometimes have different scores at the same time due to various issues arising. If lenders do not report to all credit bureaus an update of your credit scores may have been left out. Different scoring methods can also affect your credit scores at a certain period.
More cards will lead you to increase your credit limit. This will give negative information to your credit report because of a high and hard inquiry. These inquiries stay for a longer time on your report and therefore it can be very difficult for you to get loans and the bank services.
Utility bills affect your credit scores to a great extent. This is because these are bills that are paid consecutively. It is important to ensure your phone bills and electricity bills are paid on time. When you delay these utility bills the likelihood of your credit report to be negative is very high. You can consider fixing a date on when you will be paying your bill so that you can always be reminded to pay. This way you will make your credit scores appealing to the lenders and the banks.
In conclusion, it is important to know that fixing your credit scores is not an overnight success. You will require consistency and patience so that you can attain this goal. Consider the highlighted tips so that you can have a good credit report which will lead you to a good credit score.