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Credit scores reflect past credit behavior, therefore it is vital to have good financial activities to earn an exemplary credit reputation. A credit report is reviewed before the approval of any lenders, which includes all credit history of an individual showing his or her capacity or incapacity to manage his or her credit. Read the guidelines below to learn more on how to improve your credit score. Pay your bills and debts on time – If you want your credit report to be blemish free, it is imperative that you take note of unpaid accounts. Creditors create reports about these unresolved accounts to the corresponding bureaus and they can pull your credit score down. Your payment history plays a big role in your credit score. 35 percent of your score is from your ability to pay your dues and bills. Make sure unpaid fines and bills are paid before their due dates. Do not exceed your credit limit - 30 percent of your credit grade is from your outstanding credit balance. Exceeding your credit limit will affect your credit utilization and will contribute to a low score. Old accounts are good for credit score – Your old accounts that have already been paid can help you increase your credit score. 15 percent of your grade comes from the history of your old accounts. Showing financial responsibility will greatly improve your credit score. Recent inquiries and their effect - 10 percent of your grade comes from recently opened accounts. Frequent credit usage can also affect your credit score. Type of credit used – The remaining 10 percent of your credit score comes from the type of credit used. Make sure you do not have an impending debt as this will stall your other debts, creating a bad impression on credit issuers. Your credit score suffers when you actually seek for credit. This makes creditors realize that you are in some financial turmoil, making them more hesitant to approve you a loan or a credit card. Also make sure that you regularly do a credit check to check for any inaccuracies on your credit statements. This will help you have a good credit score. Get free credit report and free credit score now and check your credit history before making any big financial decision.
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