Simple Tips to Improve Your Credit History

Your credit history is a very important aspect of your financial life. Aside from giving you bragging rights, a good credit score would also increase your chances of getting things like car financing loans, credit cards, and rental homes, among others. Hence, the need to keep it at optimal levels. But don’t fear if your credits score is poor or non-existent! Below is a list of pointers that can help you give it a much-needed boost.

Pay Bills on Time

One of the things lenders look at when reviewing loan applications is checking your credit reports. And the first thing they check out in these reports is the applicant’s reliability in paying bills. Needless to say that if you pay your bills on time, your credit score will rise and you’ll be more likely to obtain funding (because they’ll think you can repay it on time).

Keep Credit Card Balance Low

The credit utilization ratio is another important factor that can significantly affect your credit history. For those who don’t know how to calculate it, simply divide the sum of all your credit charges by your total credit limit. The ideal ratio is 30% or less, so you need to lower it as best as you can to improve your current credit history.

Minimize Your Debts

Aside from the sum of your credit charges, the number of debts you’re carrying could also have an impact on your credit utilization ratio and your credit history. To lower the ratio and boost your score, you need to start minimizing these debts to manageable quantities. You can do this in at least two ways: the debt avalanche method and the debt snowball method. The former involves making large payments to settle your debt from the credit card with the higher APR before moving on to the card with the second highest APR. Meanwhile, the latter involves making small monthly payments on all your credit cards.

Don’t Close Your Extra Credit Card Accounts

Many people would probably suggest that you close off any unused credit cards you have in a last-ditch effort to boost your credit score. Don’t listen to them! In fact, not only does keeping your extra cards active a great financial strategy, but it’s also a great way to maintain your credit utilization ratio at optimal levels. So better keep those extra credit cards you have in your wallet open, particularly those with no underlying annual fees.

Watch Out for Score-Boosting Programs

Lastly, look out for programs and promos that offer opportunities for you to boost your credit score. Credit card providers usually dish these programs out to attract more clients as well as to keep current ones. If you suffer from poor or non-existent credit history, you would do well to take advantage of these score-boosting schemes.

Improve Your Credit History Through These Tips

Having a good credit history is very important if you want to lead a successful financial life. If you want to improve yours, then start by following the tips above. Do so, and you’ll soon enjoy a boosted credit score and the benefits it can provide.

Author’s Bio:

Although he graduated with a degree in Electronics Engineering, Rory League has always been a writer at heart. When not working as a writer, you’ll find him binge-watching anime, movies, and TV shows if not playing with his lively canine Charlie.

 

 

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