For one or the other reason, maintaining a satisfactory credit score becomes quite challenging. Hence, your biggest query of all time would be “how I repair my credit score?” So here is the answer to your question. Here are some techniques you should know to improve your credit score.

  • Timely Payment of Bills: It may seem obvious but is indeed the easiest way to improve your credit score. Your credit score is made up of 5 components out of which the maximum percentage holding is of your credit history being 35%. Simply, regular payment of your bill shall not suffice, you need to pay your bills timely. Late payment of bills has an adverse impact on your credit score.

If you think that the amount of installment is high, you should consult your creditor and negotiate with them about the same. In case you are unable to pay the full bill, make sure to pay the minimum amount of bill or installment timely.

Plan to buy anything on credit in such a way that you can pay it off smoothly as your poor credit history shall reflect on your credit score up to 7 years.

  • Maintain a Low Credit Card Balance: Maintaining a low credit card balance shall help improve your score. Even if you pay your credit card bills regularly, outstanding credit limit shall reflect in your report.

When you keep your credit card balance low, it indicates that you possess a sound financial position. In case you have more than a single credit card, ensure that you keep a low balance in all your accounts.

  • Don’t Close Old Accounts: Many a time, you close your dormant or inactive old accounts so that you save the account maintenance cost that the bank charges. Nonetheless, closing old accounts is not a good practice in the context of your credit report.

When your accounts are open, it reflects long positive credit history with your creditors in the report that shows your financial credibility. Closing the account shall not only remove your positive history but also shall shorten your records. Having a negative item in the shorter history shall have more impact on your score.

Thus, you should ask your bank to keep your accounts open with the minimum charges so that your credit history reflects positively with minimum cost.

  • Apply for Credit Only When Needed: People often have the query that despite paying timely bills their credit score tends to be low. You need to understand that your credit score is not only made up of your credit history but also has other components such as debt burden, the length of credit history, credit mix, etc.

Open credit accounts have a huge impact on your credit score as your credit score counts on the debt burden and credit mix as well. Even if you pay off your bills and installments timely, open credit accounts show your requirement of credit that lowers the credit score.

In this era of marketing, you may get promotional offers, discounts, and schemes, that can tempt you to apply for new accounts. Bear in mind to apply for the credit only when you need it.

  • Avoid Excess Inquiries: When you apply for loan or credit card, the creditor may inquire with credit reporting agency. Such inquiries get added to your account and remain there for one to two years that affects your credit score severely. Make sure to avoid excess inquiries to keep your score maintained.

The above techniques work dramatically for your credit repair. You are further recommended to consult professionals who can help with credit repair services for better and faster results.

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