In this article I’ll tell you 5 strategies to improve your credit score and to become eligible for a credit card that you want in your wallet.
Your credit score is one of the most important measures of your financial health. The better your score, the easier you will get approved for new loans or new lines of credit. A higher credit score can also helps you to get the credit at lowest available interest rates when you borrow
Most of the credit cards require a credit score of 700 or above. Cards with lots of perks, like complimentary lounge access at the airports, cash back rewards and travel cashbacks, generally ask for excellent score of 750+. But that doesn’t mean you can’t qualify for a credit card with a lower score — let me tell you how you can get a credit card even with a lower credit score.
If you want to boost your credit score, there are a number of quick, simple things that you can do.
though it might take a few months to see an improvement in your credit score, you can start working toward a better score in just a few hours.
If you’re looking to be approved for your favourite credit card, you’ll have to meet the minimum criteria creditworthiness and income :
- A stable Income
- Established Credit : timely payments of credit in last 2 years.
- A credit score that meets the minimum criteria of bank
Here are top 5 strategies to boost your credit score and to get the credit of your choice
1. Pay your credit bills before due date
Payment history is has a great impact on your credit score. Paying your debts before the due date is still the most underrated strategy to improve your credit score. For example if your credit cards due date is on 3rd of every month you should not wait till the 3rd, pay your bill on 1st of the month. As sometimes it takes 1-2 business days to reflect the payment in your card.
So the easiest way to increase your credit score is to avoid late payments at any cost
2. Never use more than 30% of the credit limit
The Thumb rule for keeping your credit score above 800 is to keep your total outstanding balance at 30% or less that your total credit limit.
whenever you use your credit card just keep this point in mind that you should not exhaust your credit limit fully, I repeat never. You should use only 30% of your credit limit which will keep your credit score up. The highest credit score users use only 7% of their credit limit. If you use your credit above 30% then this will directly affect your credit score.
3. Pay the bills in one shot
Another simple way to improve your credit score is to pay all yours bills in one go, you should never opt. for other exciting options like EMI or partial payment. The lender will charge you high rate of intrest and this will lead to a lower credit score. Always try to pay the full bill amount of your credit card to keep improving your credit score.
4. Use secured credit cards
Secured credit cards are a type of card that are backed by cash deposits, here the deposit amount is same as your credit limit. Secured cards are best if you are not able to get any credit card because of your lower credit score, even at lowest credit score you can get a secured credit card just by depositing a fixed amount with the lender Bank and You can use this secured credit card as normal credit card and this will help you to Build your credit score.
5. Review your credit reports
You might be wondering how can reviewing my credit report can affect my credit score. Sometimes there can be any errors in your credit report that can affect your score. you can download your credit report from any of the major credit bureaus like Experian , Equifax, or Transunion and then review your report to see what is hurting your credit score. if you go through any error in your credit report you can do the enquiry and get the error removed.