Credit scores are determined by a variety of quantifiable factors that you can influence. Even if your score is low, there are things you can do to raise it.
Don’t be late with payments:
Your payment history is the single most important factor in determining credit score. One of the most important things you can do to raise your credit score is to pay your bills on time and in full. To ensure you never miss a payment, it is recommended that you set up automatic withdrawals from your account. This is a simple method for maintaining on-time payments, a key factor in a high credit score.
Retain control of your debt-to-credit ratio:
Debt accounts for 30% of your credit score, while utilization rate is a major component of your Vantage score. Maintaining low revolving balances (those using less than 30% of their available credit) is recommended. If your credit limit is $10,000, for instance, you should try to keep your monthly payments below $3,000. Keep your monthly payments below $1,500 if your credit limit is $5,000. If your credit card limit is low, ask the company to increase it. They will gladly raise your limit if you have been a loyal customer.
Don’t let your credit record get short The length of an individual’s credit history has a significant impact on both their FICO and Vantage credit scores (15 % and 25 %, respectively). Lenders will see that you are reliable and capable of managing your finances if you keep a variety of accounts (credit card, auto loan, mortgage) open over time. Keep your existing accounts open and don’t create too many new ones. As the number of accounts you have grows smaller, so does the average age. There are times when doing nothing is the best option for your credit score.
