Factors that impacts your credit score - what is my credit score ?

Lenders use your credit score to evaluate whether you will repay your debts responsibly or not. A high credit score would make you a worthy candidate in the eyes of lenders, whereas a low credit score could easily hinder your chances of getting credit.

A good credit score can open up a lot of possibilities. It can help you to qualify for the best APR when you borrow money, and it can influence lenders to consider you creditworthy. Landlords, teleservice providers, and even cable companies consider your credit score when you apply with them for a product or service. You must know how you can increase your credit score and improve your credit health. Go through our tips to boost your credit score.
  • Pay Your Bills on Time :
The one thing that lenders are always worried about: will the borrower repay the money on time? If you pay back your balance in full on time, you are considered a reliable borrower. Make payments on time for all your accounts - not just your credit card bills but also your rent, utility bills, and even your cell phone bill. If you can't remember all the due dates well, set up autopay and get it off your head. A missed payment is detrimental to your credit score. Don't drive any of your accounts into delinquency.

  • Avoid Closing Old Credit Card Accounts :
Credit age is essential for your credit score. It shows how long you have been managing credit. You will be considered more worthy of getting credit if you can prove that you have been maintaining your credits responsibly for an extended period.
  • Fix Your Credit Utilization Ratio :
You should keep your credit utilization ratio within 30%. If you notice that your expenses are exceeding 30% of your credit limit, your credit scores will inevitably drop. Consider increasing your credit limit in such a situation. A higher credit limit automatically brings down your credit utilization rate, provided that your expenditure or credit balance remains constant.
  • Don’t Apply for Too Many Credits Simultaneously :
Hard inquiries deduct points from your credit score. If you apply for too many lines of credit at a time, each will amount to a hard inquiry. These hard inquiries remain on your credit report for quite some time. Many hard inquiries at a time will not only reduce your credit score but will also make you seem quite desperate for cash. 

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