Lifenomic Finance
Published by Amrit Maurya On Sep 2023
Before Starting work to improve your credit score you should check your credit report from the national credit bureaus TransUnion, Equifax or Experian. It helps you analyze whether your score is working in your favour or against you.
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Paying your bills on or before the due date is highly recommended because timely payment helps you to protect your credit score (payment history makes one of the highest impacts on your credit score). Also, good payment history helps to build trust with creditors.
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To avoid a negative credit impact on your credit score you should not utilize more than 30% of your credit limit.
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The more older your account the more credit-worthy you become because the length of your credit history plays a major role in improving your credit score.
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Every time when you apply for new credit cards or new loans it can decrease your credit point because of many new hard enquiries.
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There is a myth that checking your credit score regularly can decrease your credit score, let me tell you “THIS IS JUST A MYTH”. Checking regularly helps you to analyse and find errors in your credit report and helps to dispute the errors.
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If you are a new credit user and you just started your credit journey then it's very challenging to get a new unsecured credit card because you have no credit score. So to build your credit score you should get a secured credit card to build your credit score
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If you have just one credit account then it is better you should apply for another credit card or a new loan account this is because it just not only improves your credit score but also shows you are able to manage different accounts responsibly.
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Improving your credit score takes a long time. So be patient and take your financial decisions very responsibly.
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