Your credit score can play an important role in your financial life. Your credit score can determine whether you qualify for a loan and the interest rate that you are supposed to pay.
Utilities, cell phone companies, and insurers also use your score to determine to price. Your credit score is used in many areas hence its good if you have a good one. If you find that your score is lower than you expected below are ways in which you can improve it.
1. Eliminate Errors
The first step is to make sure that your credit score has accurate information on your credit report. Once you know your credit score make sure that you check all the account that they belong to you and that they accurately reflect all your payment history. If you notice any errors report to the credit bureau for investigation.
2. Set Up Automatic Payments
If you have a habit of paying your bills late set up automatic payment every month from your bank accounts. Your payment history in your accounts contributes to 35% of your credit score. Improving the timelines in which you pay your bills will boost your credit score.
3. Stop Opening New Accounts
Each time you are applying for a new credit card the lender will take out your credit report as part of the application process. This is known as a hard inquiry and several cards in a short time will weaken your credit score. Only apply for a credit card if you need it.