Many people never think about their credit score until their loan request is denied. It’s easy to understand why; a credit score isn’t something that just pops up in an ordinary person’s mind. Yet a person’s credit score has a huge influence in how willing credit institutions are to offer them credit. For this reason everyone should be concerned with their credit score. In the prospect that you have a poor credit score, there is some hope. Credit scores aren’t written in stone. Here are the best ways to improve your credit score

Start paying all your bills on time

Your bill and credit payment history have one of the greatest influences on your credit score. A potential lender will tend to look at your payment patterns. However special consideration will be given to your recent payments. So it’s a good idea to be punctual when it comes to making payments and sticking to the bill payment agreement.

Limit the number of credit accounts you use

Having several credit accounts reflects negatively on your credit score. This is because every time you open an account inquiry is made into your credit history. These inquiries appear in your credit history as negative information.

Keep your credit card debt low

Credit cards have limits. To positively impact your credit score, keep your credit as far away from the limit as you can. The closer it is, the higher your credit utilization ratio. A high credit utilization ratio has a negative impact on your credit score.

Keep the credit accounts you no longer use open

Those accounts still contain your credit history and can be used in the assessment of your creditworthiness. This history will actually portray you in a more positive light. You will look more capable of managing your finance, and our credit utilization ratio will become lower hence boosting your credit score.

Prioritize paying your credit card debt over other debts

Lenders consider the payment pattern of your credit card above all other debts. That’s why it is common to hear some people complaining about seeing no change in their credit score despite having paid off their student loans.

Limit the number of loan request you make

Every loan request you make results in a hard inquiry into your credit history. Hard inquiries hurt your credit score because they could suggest that you are a high credit risk.

Check credit card reports frequently

It is important to assess your credit card report regularly so that you can be able to spot any errors. Errors could be anything from mistaken identity or wrong payment notation. Errors may be the reason behind your low credit score. When you spot an error, quickly take the matter up with the credit reference agency especially if you believe it is the agency’s fault

Mix the type of credit accounts you have

The type of accounts that make up credit reports include credit cards, student loans, automobile loans and mortgages. Having only one type of account e.g. credit card accounts will have a negative impact on your credit score especially if you have a little credit history. You should consider adding an active installment to the mix. This will ensure you look more disciplined in the handling of your finances. This is not to say that you should take a loan you do not need.

Give it time

There is no shortcut to building a good credit score. It will take time. If you practice the habits listed here, you will begin to see a gradual improvement in your credit score. Patience is the secret.

However, we offer bad credit mobile phones even when your credit score is not as perfect. Take a mobile contract with us and the constant repayments will help your score improve drastically. Here’s a helpful link to the various types of mobile contracts that exist.