In today’s ever demanding economic times, getting a good credit score is really becoming a hurdle for a lot of people. Your credit score is vital and that’s what most lending institutions use to qualify you for a loan. There is no secret formula for establishing a strong credit score, but these few guidelines will help in answering the question, how to get good credit score.
Always pay your bills on time
This goes without say that paying your bills on time contributes to a good credit score. Your electricity and water bills count here. To ensure that your bills are paid on time, set up automatic payments or electronic reminders. Paying bills late, even if it’s a few days later may have a negative impact on your credit score. If you have missed paying on time, try as much as possible to get current within the shortest period and stay current.
Apply for credit only if you need it.
Before you are given credit, your most recent credit activity will have to be checked to show your need for credit. If you seem to be applying for credit often over a short duration, it may have a bad reflection on the lenders. This may make them think that your economic circumstances are not up to par with your living standards.
Repay any debt you owe
It’s easy to tell somebody to do this, but it takes lots of discipline. Repaying your debts will give you better sleep and peace of mind .You will need to stop using your credit cards. Here is how to get a good credit score by repaying your debts; Collect all the credit cards that have small balances and pay them off at once. Pick one or two cards for which you will be using for everything. This helps in cleaning your credit report since you do not have so many little balances all over.
Having a long history of credit helps in improving your score
Sound weird, right? A good credit score is based on experience over a long period of time. If you are highly experienced with getting credit and paying bills on time, then there is more information available about you that will help in determining whether you are a good credit risk.
Always check your credit report
Some people never get to know their credit score until when they are faced with a problem and they want to get a loan or a mortgage. It’s always wise to check your credit report to be sure that the amounts owed for all your accounts is correct and that there were no late payments that were erroneously added to your credit report. If you find any such errors, it’s important to file a dispute with the necessary authorities to have the issue solved.
Avoid getting close to your credit limit
Always strive to keep your credit balances as low as possible. When your credit score is being calculated, how close you are to exhausting your credit limit is often checked. A lot of experts will advise that you keep your credit use to not more than 30 percent.