With the state of the economy nowadays, everyone has more or less experienced their fair share of financial troubles. There are many people who have good credit scores in the past but has to go through financial challenges like a loss of a job, mortgage increase and the likes. Now they are stuck with bad credit and a lot of debt. The problem with credits scores is that people do not really bother with it unless it becomes a problem that burdens them eventually. Your credit score reflects the credit transactions that you have followed in a long time. Having a good score means that you will avail of the best interest rates whenever you apply for a credit loan. Building a high score is a long-term and continuous process and keeping it that way requires a great deal of dedication.

One of the best way to increase your credit card score is to be punctual with the payment of your bills. This is one of simplest and easiest way to increase your credit score but surprisingly there are still people who neglects to do so. One of the most essential important information that a lender wants to know before granting you a loan is how you\’ve been keeping up with your bill payments in the past and just how timely they are. It is important to know that your credit history comprises 35% of your score. If you are late with your payment for as long as 30 days, a negative report is passed down to the credit bureau. Delinquent payments can reduce your credit score for as much as 100 points.

Be careful as you swipe those credit cards because once you have maxed them out then it is very possible that it will lower your credit score. So always make sure that you keep your credit balance to a minimum. A good tip is instead of utilizing one card close to being maxed out, you can opt to transfer the balance of a nearly maxed out card to your other credit cards if possible. This way you can keep your credit card balance to a minimum. But of course, paying off your debts on time is still the best way to increase your score. But you have to keep in mind that if you choose to pay an account, do not ever proceed to close it off. A closed account will reduce your total available credit and this will consequently modify your credit ratio utilization. This can also lower your total score. If you shut down an account, this will also reduce the duration your credit history which is a surefire way to decrease your credit score.

The best course of action to take in order to increase your credit score is to take action now. Start making changes and improvements with your financial situation. The best way to go at this is to arm yourself with information with regards to the matter of improving your credit score. A high credit score can have a great impact in the financial aspect of your life.

Author Bio: Willie Rhoades is a finance analyst who enjoys writing about unsecured business loans and unsecured loans bad credit as well as other related topics.

Category: Finances
Keywords: credit score,credit transactions,credit cards,credit card,credit history