Having a good credits score will save an individual lots of hurdles when it comes to, their financial history with credit companies. A bad credit score will put some limitations on the individuals financial transactions and that is why it is important to work towards improving the credits score in the best and fastest means possible. With a good credit score then one is able to be approved for any loans that they may want to apply for amongst other things. The following steps will help an individual improve on their credit score.
1. Acquiring of a credit card- Having a credit card can help build ones credit scores over time. If one is unable to get a credit card due to lack of qualifications required, then they can get one from their personal bank. The credit card issued by the bank will be equivalent to the amount of money deposited on ones account. The card must be associated to the three major credit bureaus these are the Public Savings Bank Classic Secured Visa, Orchard Bank Classic Master card and the Citi Secured Master card.
2. Installment payments- When one is paying some kind of installment loan like personal loans, auto loans, mortgage loans and student loans, then this shows that the individual is responsible. This will improve on the individuals credit score overtime. It is very important for an individual to have a proper plan for paying back all the loans they have taken, this should be done in such a manner that their credit score will not be affected.
3. Payment on credit cards- When one pays off their revolving accounts such as the credit card, this will help their credit score drastically. The individual should also continue to pay all the installment loans like the mortgage, auto or student loan which will also help boost the person credit score.
4. Control those balances- Lenders like to see a big difference between the amount of the individuals credit and the available credit limits. One should therefore try and get their balances below 30% of the credit limit on their credit card. Aiming for below 10% on the credit card limit is even better.
5. Use the Card sparingly- The individual should try and use their credit cards lightly, if the balances on the credit car are big then this will be reflected as bad credit scores. It is better to have a proper budget which one uses to make purchases when using the credit card. If one can set limits on how much they should spend using the card, then this will help them escape bad credit scores and will improve their credit score.