Fixing Your Credit Score: The Easy Way

Is a bad credit score haunting you? There are several instances where individuals land into the low credit score trouble knowingly and unknowingly only to discover that they are no more eligible to get a mortgage loan approved from bank or the insurance company.

The only way to repair the damage is by improving the credit score. Having said that, it might demand considerable time and efforts from your end to make it happen. Just like your driving record, credit score takes into account your past behavior and present actions. So, here are a few simple ways to raise your credit score.

How to Fix Low Credit Score?

Maintain Credit Card Balance

To increase the score, pay off the balance and keep the balance low. Even if an individual pays their balance in full every month, the utilization ratio of the credit card can still be high. Ask the credit card company if it accepts multiple payments throughout the month so that the utilization ratio is low.

Exclude Small and Unnecessary Expenses

Small balances that an individual has on different credit cards can be eliminated to raise your credit score. It is always a good idea to use one card (that has a good interest rate) instead of paying charges of $40 on one and $30 on another. So, get all the credit cards and see which of those have small balances to pay them off. Prefer using only one or two cards for making the payments.

Keep Old Debt Reports

Individuals often believe that having old debt on the credit report is bad, so they try to get all the records of home or car loans off, the moment complete payment is made.

It is true that negative items are bad but the most of it disappear from the report after seven years. Good debt that you have handled well and paid off on time should however be a part of the report. They give the lender a confidence that you can be trusted with the payments.

Pay Bills on Time

Individuals planning to buy a house or anything expensive must be busy with collecting money for the initial payment. That doesn't mean you should delay in making monthly payments as they count in your credit score. Timely payments keep you in good books of the lenders, so make sure you don’t miss any next time.

Pay Dues Completely

Paying on time doesn't mean that you will be paying less than you normally do. These signs can negatively impact your credit score and scare the lender. Also, refrain from taking out cash advances and using the credit card at business.

Summing it up

Individuals can also seek help of a credit score repair consultation expert to understand the issues with the credit score and how they can be resolved to strengthen the credit history.