Ways how to improve your credit score

What is a credit score? 

A credit score is a three-digit number that a lender evaluates to help them decide to offer you a credit. A credit score gives the lender, good idea about your financial status and credit behavior. 

You need to maintain a good credit score as it plays an essential role in your financial life.

 A credit score is evaluated based on your credit history, including your repayment history, number of open accounts, types of loans, total debt levels, and credit history length.

Lenders use your credit score to evaluate the probability that you will repay your loans in time. If you have high scores, then it will be easy for you to get loans. 

Managing your money, paying bills on time, and maintaining good credit behavior will boost your credit score, making it easy for you to get loans at a lower interest rate.

You can follow certain practices to improve your credit score, which I’ll cover in this article. They are as follows:

Closely monitor your bills

You must regularly monitor your bills and check your credit report. This is the most crucial factor in your credit score. Lenders will see through your reliability to pay bills.

 Your payment history will be evaluated when the lender is reviewing your credit report. Pay all your bills on time to avoid a debt trap. Set online reminders on a calendar or your planner for payments so that you do not miss to pay any bill and there is no delay in doing so.

Be consistent in paying bills on time to raise your credit score. Any delay in your payment can negatively affect your credit score. So you should make sure to pay your bills on time every month and improve your credit score.

Apply for credit only when you need it

You should not apply for or open new credit accounts unnecessarily. If you open new accounts when not needed, it can harm your credit score in many ways.  It can increase your overall credit limit and further create hard inquiries on your report.

Such inquiries can refrain you from maintaining a good score. You must use your credit card in moderation and set a limit for yourself every month.

If your unused credit cards are not costing you any money or any fees, keep them open. If you close an account, it may raise the credit utilization ratio. So it is best to keep them open so it will not affect your credit score negatively.

Credit utilization ratio

The credit utilization ratio is essential to improve your credit score. To maintain a high credit score, you need to lower your credit utilization ratio.

It has a positive influence on your credit score and shows that you know how to manage money well. Keeping your credit card balance lowers the credit utilization ratio.

What to do if you miss any payment?

If you miss or fail to pay your monthly bills, you should immediately contact your creditor and set up a new plan with him. Discussing with your creditor can prevent the negative effect that it may have on your credit score.

It is advised to set up regular reminders on your phone or in your online calendar to keep you updated with your payment. You can consult a credit counseling organization to guide you regarding improving your score.

A useful tip to follow!

If you can afford it and it is possible for you, try to pay your bills every two weeks instead of paying monthly. This practice can improve your credit score as it will lower the utilization of credit.


A good credit score will enable you to get loans at lower interest rates and reasonable fees—regularly check your credit report to maintain a good credit score. 

Update yourself by calculating your score so that you know when and how you need to improve it. To maintain a high credit score or improve it, follow all the above-given points in mind.