Simple Ways to Improve Your Credit Score in Short Time

How to Increase Your Credit Score in 6 Months

Everybody wishes to have a good credit score. Credit score goes up and down and people fail to understand the reason behind it. However, it is easy to have a good credit score if you keep in mind certain points. Some of these points are discussed below:

Make payments on time

If you wish to have good credit score remember to do payments on time. If you pay off your credit card balance on time every month, it helps you to maintain a good credit score. If you pay off your payments without getting late every month you can maintain high credit score.

Borrow less

Credit card companies allow its customers to borrow certain amount. But you should not have the habit of borrowing money up to the limit. Revolving balance affects your credit score badly. With revolving balance your credit score goes negative even if you pay off your credit balance successfully. When in need try to borrow only a third of amount from what you are allowed.

Pay off credit card with high interest first

Credit card with highest interest rate can bring more debt to your pocket and hence affects your credit score. Hence, it is always advisable to use these cards first. By doing so your debt risk decreases and hence your credit score increases.

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When you are close to maxing limit of credit card with low limit pay it off first

Credit card bureaus will always analyze your debt as well as amount of debt in accordance to your limit. If you maintain to have low debt as compared to the amount you are allowed to borrow it has positive effect on your credit score. If you realize that you are near to the maxing limit of credit card with low limit make it a point to pay off that first. By doing so not only your debt load is reduced but also your limit does not shrink.

Paying off student loans helps but not always

If you pay off your student loan every time on time it is good for you. If you have a long history of paying off your loans on time then it will help your score. But your score can have a negative impact if debt pay off in this case results in change to your debt mixes. Credit cards are transporter for revolving debts where as student loans are installment loans as a person pays a fixed amount every month.

Pay off past due bills if any

If you have failed to pay off your past due bills and its too late still pay off your bills. This will not boost away your credit score but new venders will be happy to see that you pay off what you owed.

Small debts on various cards affects negatively

If you have small debts on multiple credit cards and you think this will not affect your score, then you are wrong. While evaluating the credit FICO analyzes how many credit cards have balance and this affects your score. So even if you have small debts on various cards, pay them off.

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One can keep in mind the above points and increase their credit score.

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