Boosting your credit score is not something easy to do. It is not like a race car and you will not be able to get instant results after you rev the engine. But it looks more like your driving record because the behavior of past few years has been taken into account. Here is a list of few effective tips that you can keep in mind in order to get the credit rating up with minimum hassle.
- Keep an eye on your credit card balances
If you want to get the credit rating up, you need to keep an eye on your credit card balance and make sure that you are using a smaller percentage of the credit limit as much as possible. In fact, it is better to keep it under 30%. If you can pay down all your balances and keep those balances at a lower level, you can easily increase your credit rating.
- Use the calendar
If you are looking forward to purchase a car, home or even go for a student loan, you need to use the calendar wisely. Every single time you apply for credit, a small dip would be created in your overall credit score. This can last a year. When you are sending multiple applications to receive credit, it gives an idea that you want to use more credit. Even if you send multiple applications, you need to be careful enough to take only one loan.
- Don’t obsess
When you know that you would need credit soon, you should pay more attention towards the credit score. In the meantime, you need to use credit and settle the bills in a responsible manner. If you adapt smart spending behaviors, you will get the opportunity to stay away from frustration in the long run. Before you buy a new car or a home, you need to spring for a copy of the credit score, at least few months in advance. This will assist you to use credit in a responsible way.
- Settle the bills on time
When you are trying to make a big investment in your life, such as to purchase a new car or a home, you would need to get a lot of cash to your hand. In such a situation, you should never settle the bills after due date. Even if you are saving a lot of money, it could create a negative impact on your overall credit score. Therefore, you need to make sure that you settle all the bills on time.
- Get rid of credit card balances
Last but not least, you need to get rid of all the nuisance balances in your credit cards. It can assist you to improve the credit score without much hassle. Most of the people have small balances on their credit cards. Even they think those balances are negligible, it could create a negative impact on credit rating and you should settle all of them.