7 Unknown tricks that can help to improve credit score

There are many ways that can actually help you to improve your credit such as on-time debt payments, having different lines of credit like credit cards, mortgage, personal loan, car loan, keeping credit cards etc. But, many of you’re unaware of some little known tricks that are also very effective to make improvement of credit.

7 Little known tricks to raise your credit score

Though the process is not easy but there are some tricks that can help you to improve your credit. Here are some little known tricks are:

1. Review credit reports regularly

Check your credit reports on regular basis. Most of the people check their report once a year, but it’s important to review the reports more than once in a year. Because, it’s quite possible to get wrong listings on your credit reports that can hurt your credit. So, reviewing is very important to improve credit score. Find out what else you can see in your credit report.

2. Take surefire steps even if any small error found

Errors are harmful. No matter how small it is, as example spelling mistake, incorrect address. DeVonna Joy, an attorney at the Consumer Justice Law Center in Big Bend, Wis. said, "Those kinds of things can be indicative of mixed files [or] of identity theft.” So, as soon as you get your report, look closely and find out if there is any error. Dispute them as soon as possible by sending letters. Browse each of the credit bureaus website to file a dispute online.

3. Try not to open multiple accounts

Different credit lines can help you improve your credit. But you should maintain it properly unless it can hurt your score. So, if you’re not able to maintain multiple accounts then its advisable not to open. But, don't close all the accounts all of a sudden. That can affect the score negatively.

4. Maintain low balance

Try to maintain a low balance on your credit cards. It will help you to improve credit. Remember, your credit card balance shouldn’t go above 30% of the credit limit available. Because, higher balance can lower down your credit score.

5. Maintain utility bills payments

Utility bills generally don’t get listed on your credit reports, but once you miss payments these can go to collections. When any of your dues or bills goes over to collection agencies, it gets listed on your credit report (in general). So, pay the utility bills on time in order to improve credit.

6. Avoid paying bills on due date

If you determine to improve your score then you should pay bills on time or at least before the due date. Thus, you can stop your balances to get reported.

7. Maintain low debt-to-income ratio

Maintain low debt-to-income ratio. It will help you maintain good credit in the long run. This can also help you get new credit too like loans and mortgages. Low DTI or debt-to-income ratio will mean that you can manage your debts easily enough.

Bottom lines

It’s important for you to maintain good credit as it will help you while buying home, car, renting, or even getting a good job. Remember, you can build good credit score once you manage your finance consistently. Though it will take time, but over the time you’ll see the improvement of your credit. Seek help from a legitimate credit counsellor if you find any financial difficulties. It will help you to manage finance and get better score as well.

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