Best tips to improve your credit score

There are many ways by which you can repair your credit and improve your credit score. Let's discuss some of them.

1. Get a copy of your credit report: take the copy and understand it. Get the copy from all the three bureaus. Find out the faults, if any.
2. Lower your credit card expenses: reduce the use of credit card. Cut down the payment that you make with your credit card.
3. Make sure you pay off all your credit card balances on time. If you don't have cash in hand then request for increase in credit line. Take the limit but don't use it. But before you make a request, clear all your doubts. Inquire about all the aspects before you apply.
4. Apply for secured credit card. You can use this option if you are not eligible for regular credit. You can convert this card to a regular card after certain time period. Now, with this secured card pay your bills timely and keep your balance low. This will help you to rebuilt and improve your credit score.
5. Improve your credit score with credit monitoring program. The criteria considered to calculate your credit score include history of payment performance, current debt level, length of credit history and the credit cards and loan application in your financial statement. All these factors are looked into and the figures considered in calculating your credit score. What you have to do is have a credit monitoring program. Apply for a credit report. Check it regularly for any errors. And if you find any errors then take the responsibility of correcting it. Report the errors to the authorities. Thus a credit monitoring program offers you two major benefits. First, you get to know the type of factors considered by the lenders in calculating your credit score. Second, you improve your credit score.
6. Do not apply for loans unless it is necessary. If you have no other option, apply for the loan by securing your saving account. But here you should have at least $500 in your account.
7. Avoid hard inquiries. These inquiries reduce at least five points of your score.
8. Check the payment dates. Note them down and never miss them. Make timely payments. This will take you a long way in correcting your credit score.
9. Use the re aging technique. By this your lender converts your past due account to current one. This dramatically helps you to improve your credit score. But you have to assure your lender that you will make the payments on time. In fact you should have three timely payments in previous months.