How to Improve Your Credit Score

Your credit score is a very important in any financial transaction that you make or intend making in future. So it’s good to know what your score is, to be able to understand its meaning and learn how you can improve it.

If you have ever borrowed money or utilized credit before it has a score that reflects how well you handle your current credit. Your credit score is determined by amount of credit you have, how much money you owe and whether you made payments on time.

Your credit score serves as a predictor of how likely you are to repay any credit given to you by your would be creditor or lender. If you usually make payments on time you will likely have a good credit history and it will be relatively easy for you to get loan from banks or credit unions.

If your score is bad, fix it.

Make sure you pay your bills on time. Failure to do this will have a negative impact on your credit score.

Don’t exceed your monthly limit. Set an amount you can afford and stick with it.

Eliminate accounts you don’t use, especially accounts with high annual fees and high interest rates.