2020/03/12 | Tips and Tricks
How to improve your credit score
Articles talking about the best way to improve your credit score are many, but their writers miss the mark, sometimes, by not considering the fact that the people they’re targeting need realistic recommendations they can apply to their difficult circumstances! Here are a few practical advices that you can start using today.
The debt ratio
You know that you have to fully reimburse your credit card each and every month, but what you may ignore is that it’s not enough to maintain a pristine credit score if your balance regularly exceeds your limit’s 50 % floor. For example: let’s say you have a credit card with a 1,500 $ limit on which you spend every month 1,200 $ - 1,300 $ before bringing the balance back to 0 $. The fact that your balance regularly exceeds the 80 % threshold reflects poorly on you in the eyes of credit bureaus, even if you’re a good payer!
The diligence of all your payments
It’s probable that a good portion of people with a bad credit score are going through a rough time, indeed, but some others hurt their rating simply because they lack discipline and fail to pay their bills in time. Try to pay your bills as soon as you receive them, to the extent possible, you don’t want to look like a borrower who needs to be closely watched.
A thorough tracking
There is another financial pitfall for a lot of people: a lack of expense tracking. You put in your PIN number here, simply tap your card there… You don’t have any excuse: the more limited your budget is, the more closely you should track your hard-earned money. If you’re frequently “surprised” by the balance of your credit accounts, change your consumption habits or your focus on this matter.
Eyes wide open
Keep an eye on your credit file. Check it now and then with a credit bureau to make sure the informations reported are accurate. If it’s not the case, make a (free) change request. Having your eyes opened also means being wise enough to seek professional (financial) help if you feel that you’re on a slippery slope.
Managing your personal finances (and thus your credit score) is not easy, which doesn’t mean that it’s complicated: it’s just a matter of taking good habits and keeping them during your lifetime. Do you feel like you can do it?