Improving your personal credit score is not as easy as it seems. Some people are mistaken that they will boost their credit card score over night, but that won’t be happening. If you’re going to apply for a small business loan in the future you need to keep your personal credit score rating well. For improving your credit card score you need to be consistent about few facts and patient with the process. When it comes to your credit history, the lenders will go through your accounts from previous years as well your present credit score history. Here are four simple ways you can improve your personal credit score:
1. Pay bills on time:
If you love shopping using you should be really concerned about your credit card bill and always pay it on time. By not paying your credit card bills on time you won’t only develop a bad credit score, but you will also have to pay higher interest rates on your payments. If you want to improve your personal credit score always pay your credit card bills within the period of 30 days without any interest rate of late payments, the more you will delay the payment the more they will charge interest on it and will create a horrible record for your personal credit score.
2. Watch those credit card balances:
People usually forget to notice the percentage of credit they are using according to the limit on their card. You should be well aware of the credit you are using from your actual credit limit on the card, as it might leave a good or bad impact on your credit score rating depending upon your usage. According to the experts, if you use less than 30% of credit from your card, it will boost your credit score rating in no time but if you are using more than 50-60% of credit on your card limit, it will badly affect your credit score rating and will decrease to a destructive level. The only condition through which your high utilization ratio won’t affect your credit score rating is that if you are paying your balance in full amount and on time every month.
3. Eliminate credit card balances:
Nowadays, people are using multiple credit cards to make purchases, which are not appreciated by the experts who are there to help people improve their credit score ratings. By eliminating your credit card, balances will be very useful to improve your credit score ratings, by making of list of your credit cards with small or big balance and paying them off you can prevent yourself from using multiple credit cards. This way you will save your personal credit score rating from being ruined by many due balance on different credit cards.
4. Leave old debt on your report:
It’s a normal practice among the people that once they have paid off their debts; they immediately try to make a call to the lender’s organizations to remove it from their credit report, which is not appreciated if you have managed your debt repayments on time and in a good manner. People assume that the detail of their old debt on their credit report is bad which is not. The negative items purchased through credit card are bad for your credit score rating, but it will disappear from your report in seven years, but if you have handled your debt payments on time this is good for your credit score rating don’t try to remove it from your credit report.