Your Ultimate Guide To A Preferred Credit Score

Your credit score is constantly monitored by the financial institutions. For the sake of easy credit availability, you should maintain a good credit score. A good score is always preferred by financial institutions and banks. 

There can be many factors that affect your credit score and limit your credit volume. Amongst all the factors, the most prominent one is your credit history. Your credit history can affect your credit score in the most brawny manner. 

For those of you who have a nadir credit score, you must be wondering how to improve it. Well, you don’t have to worry anymore. With these simple yet effective methods from the top financial critics and operators, you can improve your credit score by almost three digits within months. 

Utility Bills Are Credible 

You must have heard that your utility bills are considered for tax exemptions while filing your returns. Surprisingly, your utility bills are also considered while accounting your credit score. 

Utility bills including, your monthly subscriptions for cellular reception, your DTH subscription, your grocery and gas bills, and your electricity bills do affect your credit score. Outstanding bills can drop your credit score significantly, overnight. And there’s probably nothing that you can do for it, instead of paying the bills. 

But what about the dropped score? The next time you pay your bills, make sure you get it accounted in your account statement so that your credit score becomes stable. But, not letting the bills stand out in the first place is the best practice that can keep your score high. 

Timely Bill Payments Are Considered As A Booster 

As already mentioned, not letting the bills stand out are an indicator of good credit score, you should consider paying it before the due date. Clearing your bills before the due date can indeed boost your credit score.

Financial institutes consider early payments as an indicator of easy returns of the credits paid. According to Seth Olsen from, paying your bills on time is the best way to improve your credit score. You get the instant boost and the banks and the credit card companies start trusting your financial situation once again. 

Try To Repay Your Outstanding Debts Rather Than Shifting Them 

A common practice that almost all of us do, is shifting our credits. This practice costs way more than can be anticipated. Shifting of debts between lenders and credit institutions do not clear off the debt, in fact, increases the amount of interest manifolds, which is also to be repaid. 

Instead of shifting your debts between your lenders and creditors, you should repay them. Repaying your debts after it stands out, can hold your credit score. Whereas, repaying in time can boost your score incredibly. 

Another benefit of repaying your debts and not shifting them is that you can ask your credit card company to increase your credit limit slightly. Here’s the secret: Increasing your limit can actually improve your credit score exponentially. 

Do Not Close Your Unused Credit Cards 

Closing your unused credit cards can call in for inquiry on your FICO score. Your FICO score is a metric used by the credit lenders to analyze your credibility and credit security. 

When you close your unused credit cards, they usually don’t dip your credit score but when you try to reopen your credit account, you may have to face a blow of inquiries. You certainly wouldn’t want that. 

Having said that, unclosed but cleared credits can ensure that your credit score stays high. It is pretty logical. The less you exploit your credits, the more your credit score increases. 

Too Much Credit Can Be A Disaster 

As already said, unused credits keep your scores high, on the contrary, too much credit can drop your score to bottom. The more you use your credit card, the more you owe to the financial institutions. 

It is pretty obvious that high debts would make anyone doubt the feasibility of repayment of the loan or credit. It is advised that once you clear off all your debts and loans, only then should you further buy more loan or credit. In fact, regular use of your credit cards and timely repayment also help increase your credit score. 

When you purchase a loan or use your credit card, you are obliged to repay the debts. If you fail to do so, you may have to face legal suit in civil courts. Although these loans fall under the unsecured loan, being a defaulter in the financial records can pose serious threats to your personal possessions. So make sure that if you use your credit card, you repay the loan in time.

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