Like any other citizen, I have my share of obligations. I earn, I spend, I owe. I have to admit I do go overboard and sometimes spend more than what I earn. The excess of what I spend becomes “the obligation”. Now it’s called an obligation because we are all responsible for paying for what we spent. Ergo we are forced, er, obligated to pay.

Now having just one credit card is more than a world of convenience. It is also a great temptation to spend more. Why? Credit cards come in handy when you don’t have cash readily available to pay for your bills or purchases. Credit cards are a leeway for you to extend your credit and payment deadline. You are given the facility of “buying time”.

It’s not always that easy to be bestowed with a credit card. Credit card companies are wise when it comes to giving you that credit facility. First, they look at your credit scores. “What’s that?” you say.

Credit scores is a credit risk rating lending institutions give an individual who wants to borrow money from them. Lenders have the uncanny ability to dig deep into the dirt and find all the information about your credit history. What we individuals don’t know is that we leave a paper trail of our financial status. Bank records, previous credit card purchases and payments are all recorded. Financial institutions have access to this information and base our credit scores on them.

Credit scores are based on how we spend, borrow and pay for all our obligations. You are a high credit risk if you borrow too much and do not pay on time. For this kind of spending habit, you are given a very low credit score meaning you are a very high credit risk! Low credit scores slim down your chances in having your credit card application approved. It would also affect your future transactions with a bank. Banks also use credit scores in deciding whether to grant you a loan or not.

Just like everybody, I have been thru the trials of being judged whether I am a credit risk or not. I have devised ways on how to improve my Credit Score quickly which I will impart to you in the next paragraphs.

How to Improve my Credit Score Quickly? Simple, learn the art of saving before spending! Typically, once we have our paycheck we automatically list down all the things we need to pay for and spend on. Then whatever is left of our money that is what we set aside for savings. Wrong! Learn to take out at least 20% of what you earn for savings. Then allot the remainder of your budget for bills payment and household spending. In that way, you will be spending within your means with a little money set a side. If banks look into your savings accounts and see a steady flow of deposits coming in every payday, it would look good for your credit history. They tend to think you will have the capacity to pay for whatever obligations you may incur in the future.

Pay your bills on time! If you can pay your credit card bills installment premiums fully on the due date that will definitely increase your credit scores.

Author Bio: For more advice on how to improve your credit score, go to CreditScoreBooster.com. Let the experts show you how to raise your credit scores.

Category: Finances
Keywords: credit score, improve credit score, boost credit scores, credit score advice