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The Dos and Don’ts of Improving Your Credit Score

Posted on 2023-04-13 17:06:12 by iNF
Personal Finance Credit score credit report financial health interest rates loans
The Dos and Don’ts of Improving Your Credit Score

Your credit score is a vital indicator of your financial health. It affects your ability to obtain loans, credit cards, and even impacts your interest rates. Your credit report contains information about your credit history, payment history, outstanding loans, and bankruptcies. If you're looking to improve your credit score, it's vital to observe the following dos and don'ts.

Dos of Improving Your Credit Score

Do pay your bills on time. Late payments can cause significant damage to your credit score. Consider setting up automatic payments to ensure you never miss a payment.

Don'ts of Improving Your Credit Score

Do pay off your debts. Outstanding debts can significantly affect your credit score. Try to pay off your debts as soon as possible, and consider enlisting the help of a credit counseling service if needed.

Do check your credit report for errors. Errors on your credit report can negatively impact your credit score. Ensure that all the information on your report is accurate and up-to-date.

Don't apply for too many credit cards or loans. Applying for too many lines of credit can negatively affect your credit score, as it signals that you may be in financial distress.

Don't close old credit accounts. Closing old credit accounts can lower your credit score, as it reduces the amount of credit available to you.

Don't cosign a loan for someone else. Cosigning a loan makes you responsible for the debt if the other person defaults. This debt will additionally affect your credit score.

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