Your credit score is a number ranging from 300 to 850 that can make all the difference in your loan eligibility and interest rates. So what can you do to help boost your credit score? Here are a few tips.
Making timely payments accounts for 35 percent of your credit score. Paying your bills on time is the best way to improve your credit score and maintain good credit.
Developing a credit history is crucial in determining your credit score. If you don’t have a credit card, get one. Simply charging $20 a month and paying that off for up to a year can boost up your score substantially.
Slowly closing unused credit card accounts can up your score as well. A card you’ve held for a few years, even if unused, is better for your score than those that you’ve just obtained. Holding them and not using them is far more responsible than using them all at once and not being able to pay them off, and can enable you to slowly close them over time.
Lenders also like to see that you can manage different types of debt. From major credit cards like a Visa or MasterCard, to department store and gas station cards, as well as installment loans and student loans, balancing these different types of debt is important in balancing a good credit score.