The importance of a good credit rating really can’t be underestimated. A high credit score will get you the best interest rates on credit cards and loans, including mortgages. You will generally qualify for the best interest rates if your credit score is in the mid-700s or higher. You can improve your credit score in several ways, however nothing happens instantly. Improving your score will take a lot of discipline, and time. Here are several tips to improve your credit scores.
1. Start paying your bills on time
Pay them a day or so early if you can, because if they are even a day or two late it affects your score. If you want good credit and don’t want to worry about missing due dates, some kind of automatic payments is the answer for many, if not most, of your obligation.
2. Be careful with your credit cards
Thirty percent of your score is based solely on how close you are to maxing out your credit cards. Using credit cards less frequently is one of the easiest ways to increase your score.
3. Don’t apply for many cards at once
Lots of activity at one time makes credit people nervous and their computer think you must have a cash-flow problem, and they lower your score.
4. Pay down your debt balance
This is the most immediate and dramatic way to increase your score. If you are serious about improving your credit score, then start with the largest debt you have and start paying it down so that you are using a less large percentage of your credit total.