Your credit score, the three-digit number that helps lenders decided whether or not you are approved for a loan. The higher your scores, the more likely you are to qualify for loans and credit cards on favorable terms which can save you money. If your credit score is low, it’s important to improve your score before you apply for a loan. Here’s how you can improve your score.
Pay your bills on time- When lenders review your credit report and request a credit score for you, they’re very interested in how reliable you are when it comes to paying your bills.
Get credit for making utility and cell phone payments on time- If you’ve been making utility and cell phone payments on time, there will soon be a way for you to improve your score by factoring in these payments.
Pay off debt and keep balances low on credit cards- Pay off your credit cards either over a period of time or every month. Try to keep your monthly balances low and not over spend.
Apply and open new credit accounts as needed- Don’t open accounts to have a better credit mix- it won’t improve your score and can harm it.
Don’t close unused credit cards- Keep unused credit cards open as long as they aren’t costing you annual fees.
