Lending institutions judge your financial aptitude by your credit score. Getting approved for a loan isn’t always an easy task, but increasing your credit rating will give you the best chance. There are various ways that you could improve your credit score and of course among all of them, one of the best ways is to always pay your debts on time.

By paying off credit cards towards the end of every month can also help improve your credit scores, along with making those payments on time. Another thing you should also make sure of is that you don’t have large credit card balances because this could have a negative impact on your credit score. So paying your balances in full every month, when possible, can be beneficial in more than one way.

 

“I often say that paying off your debt is like dieting. There are no miracle cures; it takes discipline and hard work.” – Lisa Madigan

Another factor which can have a negative impact on your credit score is that opening new credit card accounts lowers the average age of all your accounts. The credit agencies like to see a long history of established credit. The longer your history of having a good financial track record, the more trusted you will be with credit. So be mindful of how that may impact your credit score when opening any new accounts.

One of the first things that you should do is to get a free credit report from each one of the 3 major credit agencies Transunion, Equifax and Experian. Every year you’re entitled to get your copy for free and that’s one way you can manage your score. By keeping an eye on what is being reported about you, the better your chances of spotting any discrepancies and correcting them so you can keep your score in top shape!

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