How to Ace Your Credit Score
A credit score is important because it is evaluated whenever one makes a large purchase. An individual's credit score is considered for automobile and home purchases, not to mention future credit and loan applications. Learn how to ace your credit score by being responsible with your credit and prompt with your payments.
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Instructions
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Pay your bills on time. All of the bills you pay on a monthly basis, including phone, cable and utilities, have an effect on your credit score. Making late payments can hurt your credit score, but consistent payments made in full before the due date will reflect positively on your overall credit rating. Have your payments automatically debited from your bank account every month to guarantee on-time payments.
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Make significant payments. Creditors allow you to pay a monthly minimum amount that is a percentage of your total balance. Get ahead of the game by making larger payments whenever possible. Paying off credit card balances consistently will improve your credit rating and lessen your risk of going over your spending limit.
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Check your balances daily. The best way to stay on top of your finances and your credit score is to check your bank account and bill balances regularly. This will guarantee that you're always aware of due dates, balances and spending limits; it will also help you detect any suspicious activity that could mean identity theft or fraud.
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Limit your credit cards. It's better to have one or two credit cards with well-maintained balances than to have several high-balance lines of credit. Keep one credit card reserved for emergencies and another one for everyday use. Maintaining reasonable balances on just these two cards will improve your credit score and help you stay in control of your finances.
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Lower your interest rates whenever possible. Credit card companies and banks periodically offer refinancing options with consolidation or lower interest rates. Switching to a lower interest rate will lower your monthly payments, allowing you to pay more and get the balances down faster.
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Request credit reports frequently. Some creditors periodically send cardholders their credit score reports, and most others will provide them when they're requested. Get your credit report every six months so you can keep track of changes and improvements to your credit score.
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