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How to Improve Your Credit Score

By Janet Lacey
Published: Friday, September 4th, 2009

Credit score is three digit numbers which is determined on the basis of your credit history. This score ranges from 300 to 850 and higher the score better it is. Your credit score not only helps you to get a loan but also keeps the rate of interest low so that your hundreds of dollars are saved on premium. The rate of insurance and employers credibility is also affected through this score.

If you have a good score than there can be nothing better than this but if your score is low then just calm down as there are some ways through which you can improve your score. You have do follow some simple rules and tips on your part to get a hike in your credit score. Though this process may take time but it will finally give you good results. Following are some of the ways by which you can take control of your financial life by improving your credit score:

  • Payment of Bills on time:
    Payment of all your bills in time will help you a lot to move forward in your credit score chart. Though some of the bills do have a grace period but is always better to make payment on time in order to avoid any unforeseen events in future. Even many small bills can make a big difference in your overall score so it is very important to pay due consideration on them as well. Paying bills on time will start showing positive results from the very first month and will slowly improve with time.
  • Paying more than minimum amount:
    Paying more than minimum amount on your credit card is an effective way to improve your credit score. Though it is not essential to double your minimum due amount but if you will do so it will help you a lot to increase the number of scores quickly. Besides paying more than due amount, always keep your card at 50% of your maximum credit limit. This way you can make a good improvement in your score.
  • Do not have many cards with no balance:
    Do not stock large number of department cards with no balance just for the sake of applying for discounts at stores. Just remove these cards and inform the concerned company that you no longer need them. By getting rid of these cards you can get a good hike in your credit score.
  • Look for mistakes if any in your credit report:
    Credit score is determined on the basis of your credit report, so just look out for all the errors if any in your credit report which can hamper your score. By identifying these errors you can rectify them and increase your score.

So just follow these simple yet effective means to get a good credit score which is very important to maintain your financial stability. Do not let any stone left unturned to keep your scores high. Do all the needful and enjoy wide range of benefits of having high score.

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