5 Ideas to Boost your Credit Score

Some people turn out to be more successful in money management than the others and consequently, they can benefit from their high credit scores. Actually, it is very profitable to have a high credit score, because there are situations in which it saves a lot of your money – for example, borrowers with good credit scores receive better interest rates.

If your financial habits left you with a low score, you should change them for those which will help you increase the score. Below you can find five things you must become aware of if you want to become one of those successful people.

  1. You need to know what the credit score is and check it regularly. To put it briefly, a credit score is a number from 300 to 850, and here the higher , the better. There is a whole range of factors which influence your score, but in general it concerns your debt and how you deal with it. Its purpose is to show the potential lenders how much credible you are – they can see your credit history and assess the risk of lending money to you. And people with high credit scores receive much better loan or credit card offers than those with the lower ones. First of all, learn about credit scores, and then, check it regularly  once a year just to know where you are at the moment.
  2. Being unpunctual in your payments lowers your score. The history of your payments constitutes 35 percent of the FICO score – it is a very influential factor. Therefore, if you tend to forget about your bills and you rarely pay them on time, you lose a lot. You need a good solution to this problem so think of a strategy that will make you a punctual payer, finally. We have some clues: choose automatic payments if you know you will keep forgetting, decide that you pay everything as soon as you receive the bill or choose one day in a month when you sit and pay everything at once.
  3. You should become well-organized with your financial actions. Monitor your budget and spending. Write everything down to keep control over your finances and due dates of any payments. You can consider Mint or LearnVest – softwares which help organize your finances.
  4. You should avoid high balances. Having a high limit on your credit card does not allow you to buy too much. Active credit accounts are needed for your credit report, but high balances are not welcome. If your credit utilization ratio does not exceed 30 percent, you just spend more than you can pay for and in this way you lower your score.
  5. Do not exaggerate with the new credit. It is significant to be sensible in getting more and more credit accounts, since opening a few ones in a short amount of time will decrease your score. Why? Just because such a situation is not well-seen by credit bureaus.


Now decide what you need to do to boost your credit score. Changing your financial routine may take a bit of time, but do not feel discouraged. Try to achieve the goals one by one and know that the final result is really worth the efforts.

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