First of all, what a credit score actually is? It basically just tells the lender how creditworthy you are! So, the higher the credit score you have, the more trustworthiness a bank sees in you and tends to give you more money in the form of credit. A credit score is composed of 5 main factors.

• On-time payment makes up 35% of it so, never late your payments
• Credit utilization which consists of 30% of the credit score
• Age of credit which is 15% of your score
• Types of credits have 10% of the score
• Lastly, again 10% of credit score belongs to hard inquiries

Here we will talk about some basic ways those are helpful in the betterment of your credit score.

1. Understand Your Credit Report

The very first thing that you need to do is understand the report and for that, we suggest you go to creditcarmen.com or get any app that could help you in giving your credit report. In this way you can see the main factors, we have mentioned earlier, and the places where you are lacking. After that, all you need to do is pay attention to these points so that you can go ahead and attack those areas to take them to a proper place.

2. Pay The Card Debts

It does not necessarily apply to everyone but the first thing that you need to do, especially after checking your credit report and lacking point, is paying off any card debts you have on the pending list. These debts could be any like having an EMI on hold or you missed any other monthly loan payment etc. On the other hand, if you miss a payment in the younger part of your credit card journey, this is going to do bigger damage to your score. Furthermore, if you do not have money to pay your monthly installment then borrow some money from a family member but never leave any debt on your card. You can return that money after some time because a family member or a friend never asks for interest like a bank.

3. Become An Authorized User

For this purpose, you need to boost your credit card’s age as well as the on-time payment history. Now, this is a great thing to do with somebody that you trust because, once they add you to their credit card account as an authorized user, you basically assume their credit card history which will increase your score in return. Moreover, just imagine that this person has had his credit card for 5 years with a great on-time payment history! It is really going to take your score up to the skies as it affects its 35%. Lastly, you need to make sure the targeted person’s history is really good otherwise your credit score will also suffer alongside of his.

4. Pay Off High Balances

To decrease your credit utilization you need to pay off your high balances. Ideally, you need to keep your credit utilization under 10% and it shows the bank that you are actually using your card responsibly and will be able to pay the debt on time.

5. Get A New Credit Card

You must be worried about the fact that applying for a new card decreases the credit score but don’t worry it will be a temporary impact. Because, if you will be responsible and pay your payments on time your score will increase even higher than the previous rate.

Final Words

Be genuine plus professional and keep making legal and responsible progress in your record. This way, you will definitely face a forever higher credit score. Learn this here now. Good luck!