Easy Ways to Improve your Credit Score

Here are some tips on how you can improve your credit score. You might ask why you need to improve your personal credit score. Well if you ever want to get a loan like a mortgage from a bank or be approved for a credit card or even purchase a new vehicle with 0% down you can use these easy tips to help improve your credit score.
1) Never miss a bill payment of any kind whether it is a power bill or a monthly payment on a loan do not miss your payment.
2) Just as important as easy tip #1 is to never be late making loan payments bill payments or any type of payment. Being late will affect your credit score if your bank or creditor decides to report you. In some institutions it is an automatic process.
3) If you are thinking about borrowing in the next couple years get rid of any credit cards that you do not use. This will give you borrowing power improving your debt asset ratio. When you go for a loan the lender always takes into account any unused credit you have and it is a negative on your score when trying to borrow. Just because you don’t have anything owing on the credit card doesn’t mean you won’t go max out the card after you get your loan which could possibly put you into a situation where you might not be able to make your loan payment and that is what they are looking for.
4) Pay down debt. You have probably heard this one many times before and for good reason. The more you owe the closer you are to maxing out how much you can make in payments. It only makes sense. So if you are going to need money for something else do yourself a favour and pay down what you already owe.
5) The quick and easy version of this article is to make sure you make regular on time payments, pay down any debt you have accumulated and get rid of any unused credit you have in your wallet.
The better your financial situation the better you will feel mentally and the more freedom you will have. One easier tip on how to improve your credit score is to not borrow if you don’t really have to. Ask yourself before every purchase if you really need the item or money. Will it improve your life or could it possibly cause some hardships. Don’t get caught up with trying to keep up with the joneses, it only causes stress and possible hardship.