Tips to Boost Your Credit Score

Your credit score is simply your financial reputation. It gives lenders and others a tool to decide whether to do business with you or not. So, it is must to have a clear and good credit score. Even if you have a poor credit score, work on repairing it. A well thought of credit score repair firm will do this for you. After repairing your credit score, follow the guidelines below to maintain it:

Pay bills on time

This is one of the best ways to improve your credit score. It works well, because lenders are informed that you take debts seriously as much as a history of paying promptly. Every lender wants to be paid in full and on time. Most experts think that up to 35% of your credit score is based on your paying of bills on time.

Avoid excessive credit

If you have huge debts, you are a higher credit risk as you’re close to overextending your credit. This simply shows the lender that you may be taking more credit than you can comfortably pay off. The higher your debts the greater your monthly debt payments, also research has shown that those with high debt loads have the hardest time financially when faced with crisis such as health issues, unemployment etc…

Have a range of credit types

The type of credit you have also calculates into your credit score. In general, lenders like to see that you can handle a range of credit types as well. Having personal credit such as credit cards, mortgage or auto loan and paying them off regularly is better rather than having only one type of credit.

Follow the above and maintain a good credit score. Remember, a good credit score will help you save money with cheaper interest rates on loans and make your life much easier.