Here are the activities by which you can improve your credit score:
1.) Review your Credit Score:
First and foremost check your credit score and know the factors affecting your credit score.
A credit score is mostly affected by the following factors:
- You should know your total credit score available and how much is used actively which is known as credit utilization rate(30%)
- Know your payment history including your bill payment history, credit card balance(35%)
- Types of credits used by you currently(10%)
- The number of credit accounts opened recently and the application made which are known as hard inquiries.
Check the errors in the credit report including inaccurate personal information.
2.) Paying Debts:
It is suggested not to use more than 30% of your credit limit in any case. You should pay your credit card bills at the end of the month but in case you can’t pay the bills at the end of the month and carrying the balance then you should pay your credit card debts.
There is a debt avalanche method in which you can save money by paying the debt of the highest-interest rate card first.
Another method used for paying debts is the snowball method in which you can pay small installments.
3.) Strengthen your Credit:
You can easily boost your credit together with your existing financial history. This process includes signing up for free, Experian can search the bank account details for phone, gas, cable and utility payments. Once the accounts have been added, a new credit score is generated.
4.) Paying bills on time:
The credit score depends on the payment history of your bills. So never delay the payment of your bills.
5.) Hard Inquiry:
Hard inquiries are done by the lender of the cars so that they can check your credit score and evaluate your financial decisions.
soft inquiries never affect your credit score.
6.) Build Credit:
If you want to get approved for a credit card then what you can do is build your credit history with the help of a secured account.
Never get upset with the bad credit score instead you can take actions to improve it and always try to keep your credit score highest so that you never face any kind of issues regarding car loans.
keep a check on your credit score so that you can improve it using the service available online.