Indeed, there are various tips and tricks in improving the credit score. However, nothing you hear or see will affect your credit score faster than paying bills on time plus using your credit cards appropriately.

Today, consumers are becoming more aware of how improving their credit scores will improve their financial outlook. When people are aware of their credit score, consumer behavior improves dramatically according to a study done by New York University.

It is worth knowing that it will take some time to rebuild a bad credit score than it does to have a good one. Mistakes will affect your credit score. Sometimes, this will end up costing hundreds or thousands of dollars with higher interest rates when borrowing. When you have a poor credit score, it can be a roadblock to setting up utilities, renting an apartment, and even getting a job.

If you are like some consumers and you don’t know your credit score, there are several resources to try to know more about the topic. Easy Credit Singapore is one of several credit card sources that can offer free credit scores. This site can provide your FICO score; this is used by 90% of the business whenever they do lending.

Meanwhile, here are some things that you can do to improve your credit score:

Apply For New Credit One at a Time

If you apply for several new accounts for a short period, it will hurt your credit score. Some people still do it because it can increase their total credit limit. However, this is not recommended by Easy Credit Singapore.

Be Careful Paying for the Old Debts

If the creditor or money lender has charged off the debt, this means that they do not expect further payments anymore. If you have mistakenly paid a charged off account, this will reactivate the debt and lower down your credit score. Most of the time, this happens whenever collection agencies are involved.

Check if you Qualify for 0% Interest Card

Some companies offer 0% interest on balances. However, there are caveats to this. There can be fees involved whenever you transfer the balance. Sometimes, the zero-percent offer is good for a certain period only that is around 12 to 18 months. To qualify for one, it will usually have a very good credit score.

Contact your Creditors

If you cannot afford your monthly bills and will possibly miss your deadline, make sure that you contact your creditors. If you quickly address your problem, it can ease the negative effects of late payments plus high outstanding balances.

Diversify your Accounts

Your credit mix will count for 10% of your credit score. This includes your auto loans, mortgage, credit cards, and student loans. Whenever you add another element to the current mix, it will help your score as long as you make your payments on time.

Don’t Close Unused Credit Card Accounts

Indeed, the age of your credit history is important. Having a longer credit history is better. If you wish to close credit accounts, choose the newer ones instead.

Have a Debt Consolidation Plan

If you enroll in a debt consolidation program from a money lender, there can be a temporary drop in your credit score. As long as you make on-time payments of your debt, your score will improve.

Prioritize the Maxed Out Cards

If you are using various credit cards and the amount owed on one or more is close to the credit limit, make sure that you pay one off first. This will bring down the credit utilization rate.

Pay More Than Once in a Billing Cycle

If you have extra money, you can pay down your bills every two weeks rather than paying it once a month. This will decrease your credit utilization. In the long run, this will improve your credit score.

Review your Credit Report

You have the right to have one free credit report each year. If you request one, it will not impact your credit score. Make sure to review the report closely. If there are any errors that you find, make sure to report it immediately. This is the closest that you can get to have a quick credit fix.

If you notify the credit-reporting agency regarding outdated or wrong information, it can have a chance to improve your credit score as soon as the false information has been removed.

Set Up Payment Reminders

For each bill that you have, make sure that you write down in a calendar or planner the reminders. You can also set up one online. When you consistently pay your bills on time, it can raise your credit score within a few months.

Quick Loan Shopping

If you have bad credit and cannot find any other ways to improve your credit score, then you can consider having a quick loan. These are loans that amount to $250 to $1,000. This will get repayment history reported to the credit agencies. In the long run, this will become a positive thing on your credit report and can be considered as a last resort.

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