Top 10 Powerful Strategies to Improve Your Credit Score

The relationship between a credit report and credit score is that information on credit report have a direct impact on credit score. The latter is used to determine individual’s ability to get approved for loans. A bad credit score means not able obtain credit or places you at a category of high risk. Even if you are approved for a loan with bad credit score, the chances are that it will have a higher interest rate than what individuals with excellent credit score gets.

If you are into business, your credit score can determine your success or failure. With bad credit score record, even an excellent business plan goes nowhere. Credit report and score are assets of value that can help develop and flourish your business. Here is a list of ten powerful strategies and tips to help you raise your credit score quick and easy:

Always pay your bills on time


This is one of the most obvious strategies. But, if you like to pay your bills late, that information will appear on your credit report and as a result a drop in the credit score. For credit cards and loans, it’s always important to make payments on time every month without skipping. If you skip one month or make a late payment, there is an impact on the credit report and credit score, though, it’s considerable for the mortgage payment. For other loans, defaulting has a disastrous effect on credit score lasting for up to 7 years.

Keeping Your Credit Balances Low

Simply having a credit card creates an impact on your credit score. Similarly, your credit card accounts payment history also affects your score. Credit card balances are also used in calculating a credit score. A balance representing 35% or more of the overall credit limit available on each of your credit cards is hurtful, even if you consistently pay beyond the minimum amount owed.  For instance, if your credit limit on the credit card is $10000, preferably, you would be trying to maintain a balance of less than $3500, at the same time, make monthly payments on time on balance that are above the required monthly payment.

Don’t Close Unused Accounts

Having a good credit history is helpful. When calculating the credit score, one of the factors used is the length of time you have had credit established with every creditor. A positive long-term history with each creditor earns you a reward, regardless of whether the account is operational or inactive. The longer your credit history remains positive with your creditors, the better.

Only apply for credit when there is urgency, but go for the best rates when shopping

When you apply for a retail store card, most probably you will only use it once or twice. Instead, you could simply use your usual credit card. For a longer term, maintaining a balance on your store credit card, the fees as well as interest rates are higher than the main credit card.

Correct Mistakes on Your Credit reports, and ensure old details are erased

This is one of the best and quickest ways to boost your credit scores. Carefully analyze all your credit reports and correct any outdated or erroneous information listed. Any incorrect information spotted, make sure you initiate a dispute so it can be removed or corrected within a span of 30 days.

Avoid Hard Inquiries

Whenever you are applying for a loan or credit card, your potential lender or creditor will make inquiries with various credit reporting agencies such as Equifax, Experian or the TransUnion. Every inquiry information is added to your credit reports, and this remains listed on the report for two years. In the case of multiple inquiries within a short period, whether approved or not, your credit score is greatly reduced.

Avoid becoming bankrupt in all ways possible

When it comes to credit rating, credit reports and credit scores, one of the biggest mistakes you can do is filing for bankruptcy. If your credit score has not fallen or dropped because of missed payments, late payments, defaults or charge-offs, listing bankruptcy on your credit report drastically drops the credit score. Additionally, bankruptcy keeps plaguing your credit reports for ten years keeping you from getting loans and credit for all that time.

Never Merge balances on One Credit Card

You cannot save a fortune in the interest charges by merging balances on a single credit card with the other. Avoid consolidating balances on one credit card. Maxing out a credit card detracts from the credit score even if payments are made on time. If the calculations of interest rates make sense, then it would be better to dispense the debt over some low-interest credit cards.

When you divorce, separate accounts

In marriage, couples are more likely to obtain a joint credit card account and also co-sign for some loans. This means information on every person’s credit report and credit score impact on the spouses’ individual accounts. If you consolidate your accounts after getting married, the records become easier to keep. However, when divorced, it is advisable to separate accounts because there could be some credit related challenges.

Negotiate with your creditors

Your creditors are not your enemies, and you don’t have to make them either. They are in business just like any other organization would be. They are in business to make a profit, and if you fail to pay your bills on time, they will limit your ability to do business with them or any other related organization. To avoid the bad credit reports and credit scores, you can always communicate openly to your creditors promptly and negotiate.


For every individual, credit score is your biggest asset and can hold you back if you keep it negative. The ten strategies outlined in this article are meant to help you in improving your credit score. These strategies can help you get the credit score that you deserve and prevent you from letting your hard work being a waste.

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