How To Increase Your Credit Card Score Fast?

Your Credit Score reveals a lot about your financial condition. A good credit score signifies a strong financial condition and vice versa. Having a good credit score has its own benefits. You can enjoy lots of financial perks and advantages. So it becomes so necessary to improve your credit score.

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Well, WHAT IS A GOOD CREDIT SCORE?

Generally, any score above 700 is considered a good credit score. But having a FICO score ranging between 750-850 is regarded as an excellent credit score.

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Below are some sites where you can check your credit score:-

  1. Credit Sesame
  2. Cibil.com
  3. TransUnion.com

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Why Do You Need To Improve Your Credit Score?

Because it can help you in the following ways:-

  1. Easier in Loan Approval
  2. Better Car Insurance Rate
  3. Less to the nil security deposit
  4. Lower Interest Rate on Loans
  5. Get a higher limit for loans

After understanding the above benefits of a higher credit score, we are sure you are also one of them who wants to improve their credit score to utilize its benefits. In this article, you will read 8 legit ways to improve your credit score fast.

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8 WAYS TO IMPROVE YOUR CREDIT CARD SCORE REALLY FAST

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1. Review Your Credit Report

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One of the first things you would be doing to improve your credit score is to review your credit card report and knowing detailed information about your credit card history. It can give you a clear cut idea of how your credit card is behaving.

We all commit mistakes, it can happen with our credit card too, reviewing the report gives you a chance to correct and improve any meantime error. It is advisable to review your credit report every 4 to 5 months.

Following are the sites provide free credit reports:-

  1. Experian
  2. Paisabazaar

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2. Pay Your Dues on Time

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You should be doing it in any way. Paying your dues from time to time can provide you with lots of benefits. It portrays yourself as a reliable consumer and keeps you in good books of credit card companies.

Paying dues on time surely affects your credit score in a positive way. Which opens several ways to get a future service at a better price. It also brings positive changes to your credit card. So make your payment on time.

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3. Minimize Your Credit Utilization Ratio

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This is another important factor that determines your CIBIL SCORE. Credit card utilization refers to how much credit available to you versus how much you have consumed. It is inverse to your Fico score.

Higher the credit utilization ratio, Lower will be your Fico Score.

Credit Utilization ratio can be complicated. It is advisable to keep your credit utilization ratio well below 30%. Paying off your debt from time to time and keeping a low balance credit card is another way to lower your credit utilization ratio which in turn increases your Credit score.

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4. Pay off Your Debt

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Nothing is better than paying off your debt, both for your financial situation as well as your credit score. Paying off your debt has a huge effect on your credit score.

It can boost your credit score by a huge margin. Your debt balance contributes up to 30% of your credit score, and not paying debt can seriously hurt your score. Pay your debt as fast as possible to avail of a good credit score.

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5. Avoid New Credit Card too Often

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Applying for a new credit card too often can be a point of concern for you. Having too many credit cards can seriously affect your credit score. Applying for a credit card too often can raise your utilization ratio and lower your FICO score.

Every time you apply for a new credit card might affect your report. You also become suspicious to credit card providers which might affect you as a penalty. Apply for a credit card when you actually need it.

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6. Keep Your Credit Balance Low

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Credit Card balance plays a significant role in determining your credit score. Higher credit card balance often referred to a higher Credit utilization rate which in turn means lower Credit score.

And the opposite is also true, Lower credit card balance means a lower utilization ratio which further means higher credit score. So maintaining the lower amount of credit card balance ensures a higher credit score.

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7. Never Closed Unused Credit Card

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Older the credit card the more beneficial it can be for you. Keeping an old credit card account open can boost your credit score. About 10- 15% of your credit card score depends upon the longevity of your credit card account.

An old and unused credit card that is open for a longer period of time usually has a low credit card utilization ratio, which in turn means higher CIBIL SCORE. And if you have a good history on your old card, don’t ever make a mistake to close it unless it is not costing you enough money.

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8. Pay More than the Minimum Balance

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Paying more than the minimum amount required is my favorite way to get rid of debt faster and avoid compound interest. Paying more than the minimum is the best way to minimize your credit utilization ratio and as we have seen earlier, the lower it would be the better your credit score.

It helps you in keeping your credit utilization well below 30% but also improves your image and keeps you in the good books of the credit card issuer.

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12 thoughts on “How To Increase Your Credit Card Score Fast?

  1. You’ve got some great tips here! I am surprised that there isn’t more discussion of credit, credit building and how to maintain a good credit score in our education systems. The lack of information being given to teens before they head out in the world is a good part of why so many are now struggling. A post like this is really valuable!

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