Improving your credit score is not a one-day event. It takes a long time, sometimes even years. Usually, your credit score is highly determined by your past actions rather than the current events. Improving your credit score is hard, but not totally impossible. You can start moving from a bad credit score to a good one by doing the right things from today going forward. There are a number of things that you must do if you want to have a good credit score. In this article, we shall examine some of the ways that are necessary for one to get a good credit rating.
Do away with credit balances
According to John Alzheimer, a credit expert from FICO and Equifax, eliminating credit balances is the best way to improve your score. The valances he was referring to are those that you have on your various credit cards. The number of cards that have balances will automatically affect your score. This is because your score is much dependent on the number of cards with balances. To be on the safer side, ensure that you away with all these balance as soon as possible. Better still, you can choose to use one card for your shopping instead of many different cards. Too many credit cards with balances will only help spoil your credit report, so you should avoid them.
Don’t remove old debt from your credit report
Many people believe that removing an old debt from their report is the best thing to do. On the contrary, Alzheimer thinks otherwise. Your credit score will automatically improve when you honor your debts. You get a good score when the credit score analysts realize that you always honor your debts. Also, you need to realize that any negative thing on your credit report will automatically disappear after seven years. So you do not have to keep calling the credit officials to remove the items from your report.
Ensure to pay bills on time to get good credit score
Most people falsely believe that having a huge amount of savings will help improve your rating. The truth of the matter is, irrespective of the amount of money you have; untimely payment of bills will hurt your credit score. You should ensure that you pay all your bills in good time to get that desired credit rating.
Many critics of credit card argue that those who use this card tend to be irresponsible. While it might be true to some extent, it should not be true to you. You should ensure that you shop using your credit card responsibly and avoid buying things that you don’t need. This will help you be able to avoid some unnecessary debts which can hurt your credit score. Ensuring that you responsibly pay all the outstanding debts and shop for only the things you need is good for your credit rating.