Because of the way credit scores are calculated, some actions you take will improve your credit score better than others.Here is one tip that, more than any other, will improve your credit score the most:
Pay your bills on time.
One of the best ways of improving your credit score is simply to pay your bills on time. This is absurdly simple but it works very well, because nothing shows lenders that you take debts seriously as much as a history of paying promptly. Every lender wants to be paid in full and on time.
If you pay all your bills on time then the odds are good that you will make the payments on a new debt on time, too, and that is certainly something every lender wants to see. Experts think that up to 35% of your credit score is based on your paying of bills on time, so this simple step is one of the easiest ways to boost your credit score.
Paying your bills on time also ensures that you don’t get hit with late fees and other financial penalties that make paying your bills off harder. Paying your bills in a timely way makes it easier to keep making payments on time.
You won't improve your credit score overnight, but most lenders give more weight and credence to new credit history than old credit history (they're more concerned with how you're doing today, then how you did twenty years ago), so even if your credit is not that great today, it only takes about six months to improve it. |
