How to improve your credit score

Credit score concept. businessman pulling scale changing credit information from poor to good, excellent. Payment history data meter. Vector illustration in flat style.

A credit score is a standardized method of determining your risk degree when you apply for a loan. It is not a complex process, but it is a vital part of your financial image. A high score gives you access to the best credit products. It can give you a lower interest rate on personal loans and can play an important role when applying for a new job or renting an apartment. There are a few ways you can help improve your credit score so that you are eligible for any type of loan:

Pay your debts on time.

Paying bank rates according to the payment schedule is the most important thing you can do to improve your score. FICO is the most influential indicator for establishing the credit score. For creditors, a person’s ability to keep up with credit payments indicates that they are able to take out a loan and repay it.


Create automatic payment reminders.

If you happen to forget that you have monthly rates at the bank, there is a solution: automatic payment. If you are not sure that you will be able to pay the installment in full, you can set it so that you can pay it in part. Some lenders that offer student loans offer a discount on your interest rate if borrowers set up payment as automatic. If you do not want to use automatic payment, you can use the payment reminder setup. Many banks and card issuers will allow you to schedule reminders through websites, including sending reminders via email or notifications. Or you can set up events on your Google or Outlook calendar by setting the due date. It doesn’t matter what notification system you use, as long as you pay the installments on time.


Don’t apply for too many loans in same period.

The FICO score analyzes the number of credit applications, such as applications for new financial products or applications to increase the credit limit, as well as the number of new account openings. These things are monitored by credit bureaus, so it is recommended that you apply only for the product you really need.

Balance your income and expenditure.

Balance your income and expenses so that you pay your loan rates without stress. For example, if you have a net monthly salary of 4,000 dollars, and you have accessed loans that require you to pay 3,500 dollars per month, it means that you are a client who presents high risks for creditors. Your credit score is favorable when the rates you have to pay monthly represent less than 30% of your income.


Discipline is the key factor when you want to improve your credit score. Even if you are going through a difficult period, it is important to make improvements in your financial behavior.

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