Good credit scores are essential for fast Personal loan approvals, getting low-interest rates on the loans and premium rewards credit cards. People who don’t have good credit scores often have to struggle more to find a lender in need of emergency, so; everyone should do regular efforts to maintain their credit score. After all, the future is uncertain, and you can face financial crisis anytime.
First of all, you need to check your existing credit score and understand whether they are good enough or you need improvement. Credit scores are given in between the range of 750 to 600. Scores above 750 are considered excellent, above 700 are good, above 650 are fair and below 649 are considered bad.


Now, people having a fair or bad credit score should know that you can’t change these scores in a few days. Improving credit score is a time taking task, and you can get the desired scores only after doing regular efforts. Let’s see how you can improve your credit scores:

  • Make Timely Payments:
The first and foremost thing that is presented through your credit score is your punctuality. The banks want to know how punctual you are in making payments and repaying your debts. Timely payments are a method to excel in this particular area. Not only this, but timely payments also show that you are a creditworthy person. Banks are more likely to give loans and other financial benefits to such people.

If you are handling your current debts and payments responsibly, then it will indicate that you will be able to do it in future as well. That’s why your credit score improves when you become punctual with your payments. For this, remember to pay bills, your credit card debts and other payments on time.

  • Focus on your Credit Utilisation Ratio:
Your credit utilisation ratio says a lot about you. Now, you must be thinking, what is this ratio? This ratio is calculated on the basis of credit available to you and how much you are using from that. For example, if you have reached your credit card limits, then it means that you are using all the credit available to you. It is not a good sign, and it can increase your credit utilisation ratio.

It shows that you are a person who remains high on debt every time and never leaves a chance to borrow from sources. Such a person can face issues in paying back such heavy debts together. Banks hesitate while lending money to such people. So, a low ratio is good for your credit score. For this, only use less than 30% of available credits to you.

  • Don’t Apply for Several Credits in a Short Span of Time:
A hard inquiry is pulled on your credit report; whenever you apply for credit. This inquiry is done by the lender bank to check your credit score. This type of inquiry lowers your credit score temporarily. The inquiry remains on your credit report for the next 24 months, and its effects last for 6 to 12 months.

It means that if you are applying for too many credit cards or loans back to back, then it can ruin your credit score. Each inquiry will affect the credit score negatively, and every next lender can know about your previous applications through your credit report. To prevent this, you have to control your applications of credit cards and loans. Don’t apply for credit unnecessarily. Do it only when there are pressing needs.

  • Take Help of Score Boosting Programs:
The number of accounts you have and their age is important factors in maintaining your credit score. Having many types of accounts show the lenders that you can handle various forms of credits. On the other hand, old accounts are accompanied by long credit history; which is useful in determining your creditworthiness. People who don’t have these two things can take advantage of score boosting programs to increase their credit score.

You can use other financial information to boost your thin credit profile with the help of programs like Experian Boost and UltraFICO. You can connect your online banking data with telecommunications and utility payment history by opting Experian Boost. On the other hand, by using UltraFICO, your banking data of checking and savings accounts will be considered alongside your credit report at the time of calculating your credit score.

  • Get at least a Few Credit Cards:
As we know that credit mix is a point that is considered while calculating your credit score, so; you should take a few credit cards. If you have one credit card, then you can apply for one more. If you have none, then try taking a few after a considerable gap. It will enhance the versatility of your credits.

But, the thing to be noticed here is that people with poor credit score can face difficulty while getting a credit card as well. So, this point is valid only for people who have a fair credit score. People with poor credit score can try to improve it by using other ways, and they can go for this tip after maintaining a considerably fair score.

  • Never Lose your Patience:
This one tip seems so simple, but it is the hardest among them all. People having bad credit score will have to do efforts for a few years to see the results, while people with fair scores will have to wait for a year or so. Hence, you should remain calm and patient while doing all these efforts. Don’t lose your hope if you can’t see any immediate results.

Many people stop doing the efforts by thinking that these aren’t affecting the credit scores, but these will eventually work in your benefit in the long run. Keeping this thing in mind will boost your confidence and motivate you to keep trying to improve your credit scores.

So, follow the given tips, and you will surely reap its benefits later.