Another ways to improve credit score

Some people probably still do not really know about credit score. In fact, your credit score can affect the chance of getting a good interest rate, the chance of getting mortgage, even a job.

Some people tend to mistakenly interpret a credit score. Some person believes that he did not have a credit score because never apply for a loan. In fact, every individual who has a bank account must have a credit score.

Credit scores are based on financial history and current assets. Credit score is becoming a reference to potential lenders regarding possibility of a person in pay off debts.

Then, what is the importance of a credit score? Every time you apply for loan, insurance premiums, mortgage, or applying for jobs related to the handling of finances, and then your credit score will be checked. If you have a bad credit score, then your chances of getting that opportunity is also reduced. Bad credit score indicates a high risk of default. Thus, the loan’s interest is also high.

If your credit score is already bad, you should make an effort to fix it. Improving credit score can indeed take some time. Be more responsible for your credit, paying bills on time, and act according to logic, can help you get a good credit score.

Here are some strategies that can be applied to improve your credit score:

1. Pay your bills on time every month.
The most important thing that you can do to improve your credit score is to pay at least the minimum payment (the amount you are required to pay) of any bill, in a timely manner for each month.

2) If there are delinquent bills, continue the installment until paid off.
If you have done some mistakes with your credit, make sure that these bills continue to be repaid to show that you can pay the debt.

3) Pay your credit card.
Pay in advance for the credit card that has a highest interest rate. In the meantime, you must also pay at least the minimum payment for other cards. After paying off your first credit card bills, you can switch to next credit card with the highest interest rate, and so on.

4) Spread the expenditure.
If you have multiple credit cards, try to spread your load on them and keep your balances low. If you do not have many credit cards, you do not need (or advisable) to open an account just to spread your debt.

5) Do not close accounts that are not used anymore.
Closure of accounts can damage your credit score because it lowers the amount of credit available to you. Instead, set aside the old cards and use at least once a month for small-value purchases, such as gasoline or eating in restaurants. If you pay your bills on time each month, the credit card companies will give a positive report about you.

6) Do not open new accounts that are not needed.
Try not to open too many accounts in a short period of time.

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