Top 5 Ways to Improve Your Credit Score

 

Has your previous credit history been awful? Are you worried about not getting a house loan in the near future? You are not alone. Several other people have had a low credit score in the past but they improved their credit score using some tips to improve credit score fast. There are various online financial publications that have vast information about this topic, but to help you, we have listed below the top 5 ways to improve your credit score:

 

1) If you use your credit card to its limit, then it can be a problem. Even if you pay the entire amount on time, it can reflect badly on your credit score. To undo this mistake, you can pay double this amount in a single month.

2) Whenever you apply for a new loan, you might be tempted to take a shorter-duration loan with a lower interest rate, but never opt for such loans with unrealistic EMI amount that you would not be able to pay. The EMI amount should be low so that you can easily pay it every month.

3) Use only a small amount of the limit of your credit card to maintain a good credit score. You can get your limit increased if it is needed.

4) If you have been using a credit card for a long time, then it can be very beneficial for your credit history. Your credit score can improve by using the same credit card for years.

5) Another mistake that you might be making is forgetting about paying your EMIs on time. This mere forgetfulness would cost you a big decrease in your credit score. So, you must put reminders on your mobile phone so that you are reminded to pay your loan EMIs on time every month.

Money & Investing Digest is an online financial publication for the money conscious that provides tips and news on trending topics in the financial arena.

Also read: best way to boost credit score, best equity release adviser and so on.

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