Apply These Three Methods to Improve Your Credit

Written by Kay Aarons 
on 21 Oct, 2023
Credit score plays an essential role in the finance sector. It determines how eligible you are to get a loan or credit limit. A high credit score shows that a person is eligible to pay a loan on time.
A higher credit score means a lower risk of lending money to a person. This is why lending companies and banks check the credit score before lending money to anyone. They prefer to lend money to people with higher credit scores to minimize the risk.

A high credit score will not only help you in getting attractive credit limits, cards, and loan offers, but it will also help you in finding attractive deals on easy EMIs. It provides plenty of perks to users.

If you have a bad credit score and are struggling to improve it quickly, then here we have discussed three effective methods to improve your credit score in a short time. Let’s follow these steps and grow your credit score quickly to discover amazing perks.

1. Pay your dues on time:

The history of late payments affects the credit score seriously. The dues and inconsistency in repayment drop the credit score badly. This is why you should clear your due on time, every time. It will simply boost your credit score and allow you to discover amazing deals.

No matter how many times you delay your repayments. Each time you delay the payment; it directly affects your credit score and drops it significantly. This is why you need to make a habit of checking your dues and remembering the dates to complete repayments on time. It is an easier way to improve your credit score in a short time.

2. Get a credit report:

Generating a credit report will help you in tracking the reasons for low credit scores. Sometimes, people fail to maintain a healthy credit score even after clearing the dues on time.

If you can’t understand why your credit score is dropping day by day, then it is time to generate your credit report. It includes complete details about your loans and credit cards.

So, you can easily track your active loans and accounts. Plus, you can also track previous loan applications. Closing your pending loan applications will also help you in improving your credit score. You can follow your credit report to boost your credit score.

3. Keep your balance low:

The large statements and dues can also affect your credit score. People always get loans for different purposes including buying a property, car, mobile phone, or medical emergencies.

The large dues affect the credit score of a person seriously even after paying the EMIs on time. This is why you should try to keep your balance low as much as possible to improve your credit score.

If your credit card is near to completing its limit, then you have to start paying a small amount of money without waiting for the due date. Clearing your balance will help you maintain a healthy credit score.

In a nutshell:

Follow these three tricks to improve your credit score and get ready to discover outstanding financial benefits.

Kay Aarons

Director & Financial Adviser Kay Aarons is a financial planning expert with over 30 years of experience. She founded Strategic Financial Solutions in 1995, growing it into one of Melbourne's leading boutique financial planning groups. Despite its growth, Kay ensures a personal touch in all client interactions. Holder of a Bachelor of Economics, she manages SFS daily and chairs the Investment Committee. Kay is passionate about mentoring and increasing women's involvement in financial advice.