Top 8 ways to Improve Your Credit Score Quickly

Credit Score

Planning to buy a house or Car , Credit Score is the one of the main factor to get Your loan approved faster . Your credit rating is used to help lenders decide whether to lend you money, how much to let you borrow and, in some cases, how much interest to charge you. Do You want to improve Your Credit Score ? Follow the below methods and improve your Credit Score .

Already have Bad Credit ?  Here are some tips to fix

Understand how Credit Scores Work : 
If you want to improve your credit score, then you must understand what your credit score is and how it works . Without this information, you won’t be able to very effectively improve your score because you won’t understand how the things you do in daily life affect your  score.

Pay on time : Make your repayments on time and pay off your accounts as early as possible . This shows that you are a sensible borrower. If you’re using savings to pay off debts, make sure you keep enough cash in an easy access savings account for emergencies.

Negotiate if any dispute  : When you look at your credit report you may see just one or two late payments. Maybe these payments were late because of an oversight or because of a one-time financial problem that has since been resolved. But you can ask creditors to “erase” that debt or any account that went to collection. Write a letter offering to pay the remaining balance if the creditor will then report the account as “paid as agreed” or maybe even remove it altogether.

Improve your debt to credit ratio : Another factor used to calculate your credit score is debt to credit ratio which is nothing but how much money you owe versus how much credit you have available. There are several ways to improve your debt to credit ratio Ask for a credit increase – This improves your debt to credit ratio without paying an extra dime on your outstanding debt.

Don’t get close to your credit limit : Experts advise keeping your use of credit at no more than 30 percent of your total credit limit .

credit limit

Check your credit score regularly : You are more likely to notice problems and  inconsistencies if you check your credit score on a regular basis – at least once a year and preferably three times a year .

Close unused accounts : Close unused credit accounts if you no longer require them. Lenders can take into account the credit limits available to you, not just what you currently owe.

Set Up auto debit option :  If you forgetting to pay bill on Due date it is better for you to Set up auto debit option either Full due payment or atleast minimum amount due .

Follow the above Steps and get a good Credit Score .

I am Finance Content Writer. I write Personal Finance, banking, investment, and insurance related content for top clients including Kotak Mahindra Bank, Edelweiss, ICICI BANK and IDFC FIRST Bank.