A credit score being a numerical summary of the whole credit report, it determines and fundamentally affects your access to credit facilities and credit terms you receive. We look at the ways of improving credit score to a desired credit score. This can be a long and hectic endeavor, especially because it is a gradual process and not a spontaneous thing that has immediate results. Improving credit score is only by changing habits of dealing and managing credit. Most people find it difficult to manage their own finances not to mention credit facilities extended to them. A combination of behavioral and practical changes is necessary to improve credit score. These changes include and not limited to:
Timely bill payments
It is one of the surest ways of improving credit score. Bills paid on time are an almost full guarantee of improved credit score. A person who pays their bills on time impresses any financial lender. Proper planning is required to ensure that all bills are timely paid. To be on the safe side, standard bank orders are ideal to ensure payments are done on your behalf on a regular basis, mostly monthly. This avoids instances of forgetting to make payments on time and improves the relationship between you and the lender, consequently improving credit score.
Continous credit use
Lack of use of credit may seem a way to improve credit score but unfortunately not true. Consistent use of credit shows that you are trusted for credit and that you are credit worthy. Continuous use helps a person set their mind to regular payments, create and develop the habit of paying bills and rates. This improved trust improves the credit score as the credit providers give positive comments as a result. In addition, use of several different forms of credit simultaneously helps improve the credit score. It shows wide built trust and ability to service facilities. Use of several credit cards therefore improves your credit score.
Credit report checks and error correction
At times a bad credit score may be erroneous. Apparently, it is a personal responsibility to ensure that there are no errors and if any corrected. Errors can harm your credit score, and best if corrected. Regular checks and supervision of your credit report ensures that you notice any errors of commission and omission and corrective measures are taken. This also shows concern to the credit providers and enhances communication, which results to positive comments, which are necessary for improving credit score.
Non-withdrawal of credit cards
Withdrawal of credit cards either shows that you are headed for bankruptcy or you are evading payments. Use of credit is what is more important to credit lenders. If you do not us credit, it causes alarm, and many of the lenders will require detailed explanations why you cancelled any credit card. This improves your credit score.
Behavioural and cognitive improvement
Like any other aspect of life, credit management is dependent on personal mode of thinking and normal behaviors. Adaption of life responsibility allows one to be responsible in servicing debts. Carelessness causes disregard to debt payments, which harms your credit score. These life improvements will cause an improvement in your life management and credit score consequently.
Improving credit score may take different periods of time depending on how severe the credit score is. Credit score is totally dependent on credit report history. Negative comment or bad thing on your credit report many years ago will affect your credit score today. In matters credit, your past will haunt you and catch up with you. Following the above simple tips, will allow improvement of your credit score.