10 Easy ways to improve credit score

1. Pay your bills on time:

Payment history is one of the most important factors in your credit score. Paying your bills on time, including credit cards, loans and other bills, helps you build a good credit history.

2. Reduce your credit card balances:

Keep credit card balances low relative to your credit limit. Ideally, try to keep your credit utilization below 30% of your available limit.

3. Do not close old credit accounts:

Old accounts with good payment history can improve your credit score. Closing these accounts can reduce the average age of your credit accounts, which can negatively impact your score.

4. Request an increase in your credit limit:

Asking for a credit limit increase can lower your credit utilization rate as long as you don’t increase your spending. This can have a positive effect on your credit score.

5. Monitor your credit report regularly:

Check your credit reports for errors or incorrect information. You can get a free credit report once a year from each of the three major credit bureaus (Equifax, Experian, and TransUnion) at AnnualCreditReport.com. If you find errors, dispute them immediately.

6. Diversify your credit mix:

Having a combination of different types of credit (like credit cards, personal loans, car financing, etc.) can improve your score. However, don’t open unnecessary accounts just to diversify.

7. Be an authorized user:

If a trusted family member or friend adds you as an authorized user on a well-managed credit card, it can improve your credit score because the credit history on that account will also be considered on your report.

8. Avoid too many credit inquiries in a short period:

Too many credit inquiries (hard inquiries) in a short space of time can lower your score. Try to avoid applying for multiple credits or credit cards simultaneously.

9. Consider a secured credit card:

If you have a limited or poor credit history, a secured credit card can help rebuild your score. These cards require a security deposit that serves as your credit limit.

10. Negotiate with creditors:

If you have outstanding debts or are having difficulty making payments, contact your creditors to negotiate payment plans or arrangements. Many lenders are willing to work with you to avoid default.

Implementing these strategies can help improve your credit score over time, making it easier for you to access better loan terms and interest rates in the future.