Unlock Your Credit Potential: A Comprehensive Guide to Fast Credit Score Growth

Everyone knows the importance of the credit score. If you are one of those who haven’t heard about it , let us tell you that a credit score is a score which is a consideration as an important factor by lenders while offering you home loans, credit cards and other credit services.

8 Proven Strategies to Boost Your Credit Score | Kredit Wala

But, if your credit score is below the average, be assured there is always room to improve. This post will talk about the easy actions that you can take to make it good within no time. So, read this piece of article from Kreditwala News to know everything which can help you to make your credit score above 800+.

1. Check Your Credit Report Regularly:

To get started, contact the major credit bureaus like CIBIL, Equifax, Experian, and TransUnion to obtain your credit report. Do a full verification of it in order to find out any mistakes or falsehoods that might prove to be your mistake. Check for any inaccuracies in your report and make necessary corrections so that you have an accurate picture of your credit score.

2. Pay Your Bills on Time:

The most important thing that you should never forget is probably paying your bills on time. Ensure payment of all the dues, including the credit card bills, loans, and the bills of the utilities as per the schedule. You can create notifications or set up automatic payment. Not making the payments on time leads to your credit score reduction and causes you some difficulties with getting credit in future.

Therefore, please try to make payment on schedule and in time. If you are struggling to pay off a bill, the option of reaching out to the company to discuss a possible installment plan is a good idea. Make sure that you take care of your bills on time in order to achieve quick improvement of the credit score.

3. Reduce Credit Card Balances:

If you have a high balance on your credit cards, there is a chance that you will have a poor credit score. Attempt to spend only 30% of your total credit limit. To increase the credit score, debts should be paid off timely or with unused limits, you can ask for a higher limit.

4. Limit New Credit Applications:

For each time you submit an application for a new credit, your credit score will be decreased. Therefore, do not request new credit unless you really require it, and unless you are already improving your score. When you apply for a new credit, the company goes to check the details of your credit report, and that’s what we call a hard inquiry.

A couple of hard inquiries may appear too risky to lenders and thus will bring the credit score down. Concentrate on good credit usage rather than opening new accounts. Only take on new credit when it is absolutely necessary. This will help you avoid frustrating situations in the future, as your credit score will be great.

5. Diversify Your Credit Mix:

The use of various types of credit accounts like credit cards, loans, and mortgages would have a positive impact on the credit scores. In addition, if you have just one credit account, add more accounts into your portfolio (but be cautious).

7. Keep Old Accounts Open:

The credit history, which is also an important factor in computing the credit score, is also another one of the factors in credit scoring. Do not consider closing old credit accounts, even though you may not use them that frequently. These reports of the accounts which, in addition to the extension of the credit history, make the score better.

8. Use Credit-Builder Loans:

In case you fail to secure credit on a regular basis, then you can consider taking a credit-builder loan. Such loans are designed to assist the customers in establishing or improving their credit by creating a repayment history, which is the crucial step in the credit rating analysis.

In these types of loans, you have to borrow a small amount of money  for a short time period. After that you are asked to repay it in EMIs. If you make all the repayments on time, it sends a message to the bureaus that you’re a responsible person who repays his loans timely. This results in improvement of your credit scores instantly.

Conclusion:

You can not improve your credit score in one night. However, you can see a little growth every month if you follow the above mentioned tips told by Kreditwala. If you want more guidance on improving your credit score, Kredit Wala is here to help you. Contact them now to make progress in improving the credit score and gaining access to greater financial possibilities. You may be amazed at how much your life will change when you take the credits as a responsibility and begin to create your own financial success story.