Your Best Bets to Repairing Your Credit Score

A credit score typically shows a person’s creditworthiness. It reflects the risks and the potential losses that the lenders might incur by lending money to the person in question. It is arrived at by making an intense analysis of the credit files related to him. Depending on these numbers, the lenders, such as banks and other money lenders can arrive at the eligibility levels of person, the interest rate that they can charge and the credit limits. There are ways to repair your credit scores, albeit slower ones. You will not get instant results and you have to make sure that you keep up the same pace, but your score will definitely be improved.

How do you keep your credit score up?

One way is to make sure you pay all your bills on time Keeping your balances hanging until even after you pass the due date ensures that your credit score drops a notch. So keep an eye on the calendar as well as your due amount and pay them off before the clock ticks by that date. Another path includes surveillance on the credit card balance. If you spend more on your credit card, then make sure that you pay on time But if you know or even think that you cannot afford such amount, it would be wise not to put it on your credit. This will automatically reflect on your credit score.

credit-score

For more information or lessons on how to control your credit card swishing impulses, please refer ‘Confessions of a Shopaholic’. Do not make any changes in your payments. If you are paying 50 dollars every month, then pay 50 dollars every month. Do not go any lower. And if you are paying it on a particular date, then it would be judicious to pay on that date every month or on dates in its vicinity. In the same vein, using your card at places that would hint at future money problems are a big no-no. Credit card issuers might panic at the first signs of such issues. Better be careful about it rather than let it affect your credit score.

Avoid multiple applications of credit within a short duration. It hints towards the fact that you need more credit, effectively causing a nose-diving dip in your credit score. And getting that credit score back up is not a task you can accomplish for a year So be clever and put your credit applications to good use Do not erase old debts that are paid off from your credit reports. They are an indicator that you are a loyal payer and you will pay it off in the stipulated time So work smart and shop smarter and keep track of your credit reports every once in a while. That will help your credit score breathe.