Tips To Improve Your Credit Score
Credit is the easiest option to get through the financial troubles. Every now and then everyone come across a situation where they have to take some credit either as a loan or using your credit card. These loans or credit can affect your credit score but in time of emergency improving your credit score can be the last thing on your mind. The credit score is a very important factor when it comes to finances and hence it is always recommended to try and improve this score. Here are a few tips on how you can improve your credit score.
1) Make maxed-out credit card payment the top priority.
The Credit score is calculated based on the portion of credit limit you use. It takes into consideration how you make use of the credit on your credit accounts and also how much credit is available on all of your cards. Due to this method of calculation is better to have a balance of $1,000 on a credit card with a limit of $5,000 (20% use of credit) instead of having a balance of $500 on a card with a limit of $1,000 (50% use of credit).
So when you have extra cash in hand look for the credit cards that are about to max out and settle the credit for them first. But also take into account the interest rate on all the credit cards, if the interest of some other card is more than the max out one, you can choose to settle the one with a higher interest rate. This, at times, can be more important than to improve the credit score.
2) Don’t miss the payment: When dealing with the credit it is important to pay the pending amount regularly. You might not be able to pay the full amount once but you can try to pay the minimum amount at least. Thought this is also not recommended as it might take longer to clear the credit amount. However, it is important to make the minimum amount instead of not paying at all. Plan your budget accordingly, if the possible search for some other source of income to accomplish your financial needs. There are many ways to earn an extra amount, using the automated trading robot like Ethereum Code to help you pay your debts faster.
3) Don’t ignore other accounts: Credit score is not dependent only on the credit cards but also take into consideration your other accounts like home loans, student loan etc. In order to improve your credit score, it is important to make the monthly decided payment for these accounts too.