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Four Simple Techniques to Improve Your Credit Score

By Ruth Racey
Published: Friday, April 30th, 2010

In a world full of expenses most of us live by using our credit cards and taking loans. While this seems very convenient to most of us having too many unpaid bills can affect the credit score. Since the credit score determines the amount of credit we can take it is important for us to have a good score. If you want to learn ways to improve your score then continue reading. The following paragraphs will tell you 4 simple ways you can improve your score.

Using Your Credit Cards Efficiently

Paying down or paying off is a great way to improve your current credit scores. If lenders see a significant gap between the available credit limit and the amount of credit you are actually using then you will definitely be eligible to take credit according to most lenders. It is recommended to get your balance to 30% below your available credit limit.

Pay Off All Old Dues As Soon As Possible

If you have any old loans or bills that you need to pay then you should seriously consider paying your dues off. Lenders are more likely to give credit to people who do not have dues since this implies that the person will pay off further bills and loans in time. If you feel that you do not have enough funds to pay off your dues then you should consider meeting a debt consultant who will help you understand the best way to pay off your current dues.

Start Using Your Oldest Credit Card

If you have an old credit card that you have not been using then you should consider using it for small amounts. The reason to use your oldest credit card lightly is because if you completely stop using your card the credit company will stop updating it at the credit bureau. As a general rule the older the credit history, the better your credit scores will be but ensure that you pay off the bills before each due date.

Use All Your Cards Wisely

Not many people know that large bills often hurt the credit scores significantly. Most people feel that if they pay their bills on time their credit scores are not adversely affected but they are not aware that many lenders prefer not to give credit to people who max out their credit cards. If you shop using your credit card frequently then you should try and pay cash for at least 25% of all your transactions.

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