impacts our lives. Whether you're trying to obtain a loan from a bank, buy
a house or even get a job, people look at your credit report or score to determine your financial
trustworthiness. Improving your credit report (which reflects your credit
score) makes it easier to apply for a loan or credit card and get better
Please note: Your credit score will not change
overnight. Improving your credit takes
these quick tips to start improving
your credit score.
Pay your bills on time. Even if you
can make only the minimum payments for a while, paying your bills on time will
help improve your credit because it proves that you are responsible.
Pay more than the minimum
requirements. Many lenders, including credit card companies, allow
you to make minimum monthly payments to your bill. The problem is,
you'll pay more in the long run since fees and interest add up. To lower
the repayment amount, try to pay more than the minimum due each month.
Even if it's just $20 more, you'll be paying less in interest and by
maintaining low balances, your credit score will improve.
Don't take on any more debt you cannot afford to
pay off. Shred those tempting offers to open a new credit card or
apply for a loan. Taking on debt
you cannot pay off will hurt your credit rating. Only take out a loan
you know you can pay off.
Understand what can impact your credit score
positively and negatively.
The length of your credit history provides insight on
how you manage your credit. Usually a long credit history will have a
positive effect on your credit score.
The types of credits you have refer to the number and
variety of credits you have. A mix of credit types, such as credit
cards, installment loans and retail accounts can have a positive effect on
your credit score as it shows you're able to handle different credits.
Recent credit includes any new accounts you open and
the number of credit inquiries. Taking on too much debt or applying
for a number of new accounts are indicators of credit risk and may impact
your credit score negatively.
The amount of credit you use can send a signal to
creditors as to whether or not you are a risk. If you use a high
amount of credit, you are considered to be high-risk and this may lower your