How can I improve my credit score?

+1 vote
asked Aug 16, 2017 in Credit by Warren (190 points)
My credit scores were good until I applied for a personal loan and now my credit rating and score has dropped by 40 points.

What are some ways I can get my credit score and credit rating to go back up?

1 Answer

0 votes
answered Aug 17, 2017 by Oliphant (6,990 points)

Here's a few ways to improve and keep a good credit score. 

Don't Open too many credit cards. 

Only open credit card accounts that you are sure you can pay off the balances. 

Having too many credit cards open with high balances can destroy your credit and applying for too many credit card accounts can harm your credit score as well. 

When you apply for credit or a loan you have a hard inquiry put on your credit rating. This can lower your credit score. 

Pay off your credit card balances as soon as possible. 

When using credit cards don't spend your whole credit card limit unless you know you can pay the credit card balance off in full. 

Paying off the full credit card balance as soon as possible after using the credit card can improve your credit score. 

If you only pay the minimum payment you won't get the balance paid off soon enough as the minimum payment will mostly cover the interest rate. 

Pay off any debt you have. 

If you have any outstanding debt such as student loans, personal loans etc then do your best to get hose paid off as soon as possible. 

101,546 questions

97,144 answers

1,291 comments

7,003,785 users

...