Every time you apply for a loan, lenders / creditors check your credit score to judge your credit worthiness, the higher the score, the better for you to take out a loan with favorable terms and conditions. So, if your score is low, you should try to improve your credit score before applying for a loan.

Here are some tips that can help you improve your credit score.

1 Pay your bills before the

One of the most important steps to improve the score is to pay your bills on time. If you can not remember the date, then you can set up automatic payments from your bank account, so you do not miss the due date. Make sure you have enough money in their bank accounts to avoid overdraft fees.

2 Do not close the longest credit card account

You should never close your oldest credit card account even if you paid the balance in full. Closing your credit accounts reduces your total available credit, which in turn, affects your credit utilization ratio (the amount of outstanding debt by your total available credit). It can reduce your credit score to some extent. It is advisable that you do not close unused credit accounts before paying claims.

3 Transfer balances to avoid the max credit cards

One strategy for improving your credit score is to transfer balances from cards (which will soon reach the credit limit) on a few cards, so you can keep your balances below 25% of the available credit limit. If possible, pay off some of your credit card account to reduce the debts of their cards.

4 The dispute negative information

is recommended in order to monitor your credit reports at regular intervals and check whether or not there is any inaccurate negative information in your report. For example, look at all the outdated information, accounts that do not belong to you, late payment until you have paid on time, etc. If you find any, and then fill in the form submitted to a credit bureau and send it along with documents supporting the fact.

When you apply for new credit, credit card issuers can make inquiries to decide whether or not to approve your request. Inquiries may mean that you are getting out too long, which in turn, can reduce your score. So, try to limit inquiries within the span of 45 days as multiple queries in this period is considered to be only 1 request a credit agency. This will help you to improve your credit score to some extent.

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