Your credit score is a very important in any financial transaction that you make or intend making in future. So it’s good you know what exactly your score is, understand its meaning and learn how you can improve it if it’s not good enough.
If you have ever borrowed money or utilized credit before it has a score that reflects how well you handle the credit givin to you in the past. The credit score is determined by amount of credit you have, how much money you owe and whether you made payments on time or not.
Your credit score serves as a predictor of how likely you are to repay any credit givin to you to your would be creditor or lender. If you usually make payments on time you will surely have good credit history and it will make it easy for you to get loan from banks or credit unions.
Otherwise, you will find it difficult to get any institution to trust you. If that’s your case – it does not have to be the end of the road.
Simple things you can do to improve your score:
Make sure you pay your bills on time. Failure to do this will have negative impact on your credit score.
Make sure you always meet up with the minimum monthly payment on your card if you can’t always pay the balances of your credit card each month.
Make sure that you don’t exceed your monthly limit. If you can keep to 50% of your limit or less it’s better.
Make sure you do away with account you don’t use most especially accounts with high annual fees and high interest rates.