Five Ways To Improve Your Credit Score Fast

Are you someone who is struggling to boost the credit score? Fret not. We are here to help. As most of us know one of the key factors that lenders look at is your credit score. This score shows your ability to repay a loan, helping the lender assess how reliable you are as a borrower. A higher credit score increases your chances of getting approved for a loan with better terms.

To improve your prospects in the eyes of a lender, below we have listed some of the tips you can follow to improve your credit score quickly.

Any debt that you have failed to repay on time will hurt your credit score. It is important to ensure strict adherence to the repayment schedule for any debt that you have yet to pay to ensure a good credit score. Failing to make payments on time will be considered poor credit behaviour by your lender.

Since you are looking to build your credit scores quickly, one of the best things you can do is to use your credit card regularly. This helps in creating a track record of how successfully you have managed credit in the past. Please note that to build a good credit score, you have to use your credit card wisely. If you spend recklessly and fail to clear the due amount on time, you will end up achieving the opposite result, thus damaging your credit score.

The credit utilisation ratio is the percentage of total available credit that you are currently using. A lower utilisation ratio can lead to better credit terms and higher credit scores. A credit utilisation ratio of 30% or less is generally considered good, while anything above that can start to negatively impact your credit score. 

Credit mix refers to the variety of credit accounts you have. It can include credit cards, car loans, personal loans, etc. Diversity in your credit portfolio can indicate that you are skilled in managing different types of credit responsibly, thus boosting your credit score. It can demonstrate that you are a responsible borrower who knows how to manage your debt well.

It is important to check your credit report for any errors. A mistake in the credit report can hurt your credit score, thus reducing your chances of securing a loan. For example, you may have already repaid a loan, but the lender may not have informed the credit bureau about it. In such a case, you need to contact the credit bureau and ask them to update the credit report. You will also need to provide supporting documents to prove your case.