How to improve credit score: The borrowers who want to apply for the loan must have fair or good credit score. The one`s who have the worst score cannot apply for the various types of loan offered by the different lenders. If the borrowers want to increase their credit score, then it will not be so easy.
The credit score is not like the race car where you can get the result instantly. The most of the borrowers with bad credit wants to improve their credit score. The basic tips to improve the credit score for the borrowers are given below. The borrowers can follow these tips and improve their credit score.
Eliminate Credit Card Balances
The credit card balances are known as the balances present on the credit cards of the borrowers. Eliminating credit card balance is the reason that can increase the credit score of the borrowers. For example, if you have the 80$ on one credit card and 20$ on the other rather than the 100$ in single credit card will have the bad effect on your credit score. The best way to improve the credit score is to pay off all the loans using the balance on all the Credit Cards.
Pay Bills before Due Date
If the borrowers are not good in paying the bills before the due date, then it will affect their credit score directly. It is necessary to pay the bills on time to get the best credit score. So, the borrowers should pay the regular bills on time and improve their credit score.
The good debt is that debt, which is dealt with full attention and pays it off early. Having the good debt on the credit card report can help in the improvement of the credit score. The borrowers should leave the old debt and good accounts on as long as it is possible. The solid repayment record of the debt affects the credit score and it is the cause of improvement of the credit card score.
Use of Calendar
When the borrowers apply for the credit, it causes the effect on the credit score of the borrower. This effect will remain for the time of the 1 year. The other tips are that the borrowers should check their credit card report for any kind of mistake or error. The borrowers also should not cancel the old credit cards because it can cause the bad credit score.
Lowest and Highest Credit Score
The highest credit score is 300 while on the hand the highest credit score is 800. The score below the 600 or 580 is considered as the bad or poor credit score. The fair or average credit score is above 600 and below 700. Then the score between the 700 to 850 is the best or perfect credit card.
So, if you have the bad or even fair credit and wants to improve your credit score, then you should follow the given above tips for improvement of the credit card score.