In the last part of this series on tips to boost your credit score, we will tell you about 3 more effective strategies to ensure that your credit score doesn’t become a hurdle at the time of applying for a loan/credit in the future:
Your credit score is a reflection of how responsibly you handled your credit in the past. Hence, in order to maintain or improve your credit score, it’s important that you avoid crossing the 30% mark when it comes to utilizing the limit offered on your credit card. As suggested earlier, while you should use your credit cards on a regular basis, it’s the responsible usage and timely repayments that can go a long way in boosting your credit score.
Any time a credit card issuer extends a credit limit enhancement offer to you, it implies that their confidence in you has improved. Hence, you should welcome and accept any such offer with open arms, even if you are in no need of a higher credit limit right now. An increase in credit limit will also positively impact your credit utilization ratio, which in turn can boost your credit score.
Avail both unsecured credits like credit card expenses and personal loans, as well as secured credit options such as home loans, and use them responsibly to boost your credit score. Making timely repayments of such credits can boost the lending establishments’ confidence in your ability to repay the credit, and also reflect positively on your credit report and score.