How to improve your credit score – Useful information

Your credit rating is one of the most important measures for your financial health. He tells lenders at a glance how responsibly you use credit. The better your score, the easier it will be for you to be approved for new loans or lines of credit. A higher credit rating can also open the door to lower loan rates. Even a part-time job can be helpful, which will be included in the file.

If you want to improve your credit rating, according to customer experience, you can do a few simple things. It takes a little effort and, of course, some time. Here’s a step-by-step guide to getting a better credit score. You can improve your credit rating with a few simple steps. First, make sure you pay your bills on time. Upload your credit card balances to maintain your credit usage ratio. Don’t close old credit card accounts or request too many new accounts.

Examine your credit reports

To improve your credit, it helps you know what can work for you (or against you). This is where your credit history comes in.

Make a copy of your credit report from each of the three major national credit bureaus: Equifax, Experian, and TransUnion. You can do it for free once a year through the official website of Then review each report to see what helps or can hurt your score.

Get a statement of accounts

FICO credit scores are used by over 90% of the best creditors and consist of five different factors:

  • Payment history (35%)
  • Credit utilization (30%)
  • Age of credit accounts (15%)
  • Credit mix (10%)
  • New credit inquiries (10%)

As you can see, your payment history has the greatest impact on your credit score. Therefore, for example, it is better to have debts paid off, such as old student loans, to keep track of you. If you have paid your debts responsibly and on time, this works in your favor.

Follow a credit utilization of 30% or less

Credit usage refers to the portion of the credit limit that you use at a given time. According to the payment history, this is the second most important factor in calculating the FICO credit rating.

Keep old accounts open and manage crimes

The credit age portion of your credit rating shows how long you have had your credit accounts. The longer the average age of the loan, the more favorable the lenders may be.

And if you have outstanding accounts, recovery accounts, or collection accounts, take steps to resolve them. If you have an account with multiple late or missed payments, for example, take the outstanding amount, then create a plan to make future payments on time. This will not delete late payments but may improve your future payment history.