Your credit score is one of the most important factors when it comes to getting loans, credit cards, and other various forms of credit. It’s essential to understand how you can improve your credit score so that you can take advantage of better rates when you need credit. Let’s look at a few ways that have been proven effective by experts for improving your credit score.

• Pay your bills on time: The first and most important way to improve your credit score is by paying all of your bills on time. This will ensure that you do not have any negative marks on your report, which can affect the outcome of a loan application.
  • When it comes to payment history, there are two different categories: revolving accounts and installment loans/credit cards. By showing consistency with both types of payments over an extended period, lenders may be more likely to see you as someone who is responsible enough for more significant amounts in the future, such as home mortgages or large business lines of credit.
• Refrain from opening new accounts too often: Another tip for improving your credit score includes refraining from opening up a lot of new credit card accounts at once because this can lower your credit score. The reason for this is that every time you open a new account, the bank takes on more risk because they don’t know much about your financial history as of yet.
• Avoid closing old accounts: By closing old accounts, you are lowering your available credit, which can be seen as unfavorable by lenders – even if there is no outstanding balance left on the card/loan.
• Regularly check your credit report: One of the best ways to improve your credit score is by regularly checking your credit report for any inaccuracies or mistakes that could be dragging down your rating. You are allowed one free copy of your credit report every year from each of the three main bureau agencies, and you can get them at AnnualCreditReport.com.
• Get a secured credit card: A great way to improve your credit score is by getting a secured credit card. When you use this type of card, the bank will place a set limit on it and hold onto that money as collateral until you pay off all of your debt every month.
• Apply for loans with co-signers: Another effective method for improving your credit scores is applying for loans or other forms of credit from lenders who allow co-signed applications. By having someone else vouch for you, they are taking responsibility if something were to happen regarding repayment, which can help raise your score in some cases.
• Use common sense when spending: Always keep track of how much money you have spent over an extended period because using too many resources at once can result in going over your credit limit. This can negatively impact your score and make it harder for you to borrow money in the future.
• Speak with a credit counselor: Credit counselors can give you great advice on how to raise your credit score. While they may suggest some of these same ideas, they can also offer additional resources to help based on your specific situation.

If your credit score is not-so-great or you just haven’t developed much of a “credit footprint” – then take the time now to do so. These tips can help – and will make it much easier for you to get credit when you truly need it.