A credit score cannot be improved overnight. The current credit actions and past years of behaviour patterns found in your credit report are taken into account by credit scores. However, there are ways and means now to commence on a path to improve credit.
Being Alert on Credit Balances
Being alert on how much rotating credit you have against how much is actually being used is one of the dominating aspects in your credit score. It is advantageous if the percentage is as small as 30% or lower for the credit rating.
Pay your balances and keep balances low to improve the score. Even if balances are paid in full every month, it could still have a higher utilization ratio than expected. This is due to some issuers using the balance on the statement as the one reported to the bureau.
Eradicating Credit Card Balances
Paying off debts could be done in many ways. The emotional and logical methods are two ways to be considered to eliminate credit card debt pertaining to multiple cards.
The emotional method comprises a way where a minimum payment could be made on all accounts and putting the balance in an account where the balance is small. Once this account is paid off, deal with the second smallest debt and so forth.
The logical method refers to paying off the balance of the account with the highest interest rate. Thereafter dealing with the next highest interest rate account, until all the cards have been paid off.
Settling bills on time
Settling a credit card on time has many advantages. If the total balance is settled before or on the due date, the risk of interest being accumulated to the balance can be avoided. It also helps to stay within budget as when the payment is made and the funds are deducted from your bank account, it gives a hint on how much could be spent for the rest of the month.
Settling bills on time gives a peace of mind and doesn’t have to be anxious or worry about the accumulating balances.
Cash loans are helpful to settle bills on time and improve the credit score. Cashwagon (Private) Limited is one such company that assists Sri Lankan people who have financial difficulties. They provide cash loans through online access without any support documentation, complicated approval process or waiting eternally. This company is a pioneer in this service in the Sri Lankan market.