How to Improve Your Credit Score

How to Improve Your Credit Score Intellichoice Finance

There is no doubt that everybody wants the easy way in life. Nobody wants to go through the long hassle waiting in lines and the agonizing days of anxiously waiting for the approval of your loans, mortgages, and the like. The good news is there are ways to improve your credit score. That way approval of your loans, mortgages, and payments wouldn’t have to take too much of your time.

What’s a Credit Score All About?

Credit scores are used by financial institution and/or lenders to assess whether or not you are fit and likely to pay your credit back. It gives Lenders a brief look on the risks that come when lending to you,  so basically, its best to have a higher credit score than a lower one so you have a greater chance of being accepted a loan or credit. Typically, the average credit score you can get is around the range of 700 to 750. You get much greater odds of approval though when you have a score of 800 and above.  

There are two main types of credit scores, namely, Generic and Custom. Generic Credit Scores is used the most, it determines your overall credit risk. Custom Credit scores, on the other hand, is different in a way that it is made based off of the lender’s own portfolio and not the borrower’s.

This type of Credit score is used mostly by small businesses and credit unions and can apply only to a particular variety of lending.

Keeping a good record of your credit score gives you a chance to get the best out of

  • Credit cards
  • Mortgages
  • Loans
  • Insurance
  • Monthly Utility payments
  • Phone plans
  • Rent

Lenders and Financial Institutions more often than not, check on the type of account, the age of your account, the number of late payments, and your total debt in general. All these factors contribute to the likelihood of getting approved.

“How Do I Improve It?”

Thinking ahead and Improving your credit score in the earlier part of the planning process is always the way to go. You can do so by trying out a few of these tips and tricks.

  • Pay Your Bills on Time, All the Time – when lenders check on your profile and see that your payments are on time, they are more likely to approve your requests at a faster amount of time. It can cause a much negative impact on your scores when you pay your bills even a day late.
  • Settle Your Debts –  keeping your card’s balance low as well as keeping records clean is also a huge plus if you want to step up your credit score game.  This is because when lenders see that you haven’t maxed out your credit cards yet, it gives them the impression that you’re able to manage well and are a responsible cardholder who’s likely to be that way after they give you another grant.
  • Review Your Credit Report – When you don’t check on your credit report, often times you forget all about it and it may cause some trouble in situations like this. They say that prevention is better than the cure so go get yourself a copy of your credit report and start double checking.

Credit Scores are a huge determinant to whether or not you will be able to apply for your loans and the like, and so you shouldn’t take it very lightly. Keep in mind these few tips and hopefully, by the end of it all, you will be able to get a higher credit score and start what needs to be done.

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