5 Ways to improve your credit score
Maintaining a good credit rating is necessary to improve your credit score. A good credit rating can help you get a better interest rate. This will save you hundreds of dollars over the life of a loan. That’s why it’s important to understand how to improve your credit rating. Here are five ways to improve your credit rating:
1. Pay your bills on time. One of the easiest ways to improve your credit rating is to make sure that your monthly payments are on time. Late payments can stay on your credit report for seven years. Thus, it’s important to keep up with your bills and make sure they’re paid on time.
2. Keep your credit use low. Your credit use ratio is the percentage of your total credit limit that you use. Experts recommend keeping this percentage as low as possible. Having too high of a credit use ratio can lower your credit score.
3. Don’t open too many new accounts. Also, applying for too many new accounts in a short period of time can decrease your credit score
4. Check your credit report. Errors on your credit report can be harmful to your credit score. To make sure your credit report is accurate, it’s important to review it and report any errors.
5. Don’t close old accounts. Closing an account can lower your credit score because. Doing so will shorten the average age of your accounts. It’s better to keep an old account open.
By following these five tips, you can improve your credit rating and get access to better loan terms. Maintaining a good credit rating is essential for access to credit facilities. For sure, it can save you hundreds of dollars over the life of a loan.
Your can check and monitor your credit score here: