"How to improve your credit score" ?

A lot of people have perplexities, misconceptions and doubts of how credit scores work, how it can be acquired & how will credit scores be improved. For the benefit of those who don’t have any clue what credit scores are, it is actually a three digit number which identifies an individual's credit merit. It measures your capacity to make payments on time and are designed to facilitate lenders on determining how likely you are to pay back your loan. It is believed that the higher the credit score the better is an individual's credit worthiness. But, many find it convoluted these days to maintain an impressive credit score. So the question remains, “How can one improve his own credit score?”. Fear not my friend, for there are still other means to improve your credit score such as starting to pay for your bills on time.

Logically, if you pay later for your debts, your credit score will also suffer if you have too many debts. Paying down your debts to a minimum will help raise your credit score. Accordingly, this simple step is one of the easiest ways to boost your credit score. If you are really serious about improving your credit score then start paying with the largest debt you have to maintain the highest score possible.


You also need to deliberately understand where these credit scores come from and how it works so you may find means to improve you’re scoring more and not give the lenders the impression of how much of a credit risk you are. 


Next is that you have to check your credit score frequently per se. You are more likely to notice problems if you check your credit score on a regular basis  for at least once a year and preferably three times a year. Be sure to report it right away if you detect anything odd or anything you don’t identify such as a charge account you did not open. Yet there are some companies which are quick to report deficiencies to the credit companies but take their time removing bad marks from your record. Still it is also up to you to watch this and ensure that your information is kept up to date, confidential and clean.

Although in general, lenders like to see that you are able to handle a whole array of credit types such as credit cards and larger types of credit such as a mortgage or auto loan and paying them off regularly is better than having only one type of credit. But you have to be cautious of credit lines and credit cards you don’t need which makes you appear like a worse credit risk. Also, having lots of accounts you don’t use increases the probability that you will be oblivious about an old account and discontinue making payments on it which results to a lowered credit score. Remember that your primary goal here is to keep up the highest possible scoring, so having fewer accounts will make it easier for you to keep track of your debts and will increase the chances of you having a good credit score.

And lastly, it is but a must to choose the best three-credit-report companies that will ultimately help you in saving your thousands of dollars and facilitate your scoring. So choose well.