Poor credit always makes it difficult to get a loan, a mortgage, or a credit card. Do you know where your credit score stands? If you are not aware of it, you must speed up and update yourself about it. Your score has a huge impact on your ability to repay and borrow. A credit score is always an important determinant that is considered by every personal loan provider to understand the ability of the borrower. It keeps track of all your debt repayment, past transactions, and payments. You must check credit score online, and keep it updated. A high credit score not only gives you easy approval but also has various other perks like a low rate of interest and a high credit limit. It is easy to improve it before it is too late, as improvement does not happen overnight. There is no magic wand that can increase your score, you need to work for it. There are various ways that can help you with a good credit score. So that you can fix it easily, we help you with some easy and amazing ways to improve your Experian credit score.
- Pay your bills on time. It does not have any other alternative. There is always a fixed due date for every bill, and you need to pay your bill within that due date. If you do not pay and miss the date, you lose out on the point. Make sure you are updated with the account balance to pay the bill on time.
- Do not utilize your entire credit limit on your credit card or do not take frequent personal loan. Every credit card comes with a fixed limit. If you are very close to reaching the credit limit, it impacts your credit score negatively. Make sure you keep your limit free so that you can easily build up a good score. When you utilize a good amount of limit, try and pay a good amount to free the limit once again.
- Check for all the credit report errors. Sometimes it may not be your fault that you end up with a low credit score. You need to make sure that your credit report has no errors. Any small error can bring your score down. It is recommended that you keep checking your credit report every now and then so that you can look for any kind of errors easily.
- Make a plan to finish off any ongoing debt. Debt is always a burden due to the monthly EMI. Any missed EMI can give you a bad credit score. So, the idea should be to finish off your loan as soon as possible. You need to plan it up so that you can easily finish off your loan before the tenure. Prepayment of loans helps with a good score.
- Keep using your credit in a responsible manner. If you have borrowed money or have a credit card, do not miss it. It is a good thing to have a credit card for an emergency. Make sure you are not wasting money just because you already have a pre-approved loan in your wallet.
- Do not apply for multiple loans at one single time. If you are facing loan rejections, you must stop for a while and look out for the reason. This will help you understand the issue and solve it. If you keep applying for various loan applications, it will lower your score automatically as the loan providers will run a hard enquiry on your credit score.
- Do not go for various credit accounts in a very short span of time. One credit card and one loan can be good to go for unless you finish off with repayment. Adding too many loans and debt to your credit journey can decrease your credit score significantly. Make sure you do not open up too many credit accounts at one single point in time.
- Do not close the credit cards that you do not use. Make sure you are going for a long credit age so that you enjoy a good Experian credit score. Even if you do not use a credit card, do not close the account. It will give you a bad impact on your credit score.
- Do not pay the minimum bill amount. You need to pay the complete bill amount that is due. It is not the right way to keep an outstanding amount on your bills. It will impact your credit score negatively. Always finish off the entire loan amount within the tenure.
- Be careful about the loan that you take. Always go for the amount that you can borrow. Make sure you take the right tenure to pay back your loan. Choose the EMI that does not become a burden on you, and you can easily pay off the loan.
Check your credit report, before you go for a personal loan. It will help you stay updated and you will not face any rejection. The above-mentioned ways are very helpful to increase your credit score. An improved credit score will give you a smooth financial journey.