Excellent Credit Score

Ways To Climb Up The Credit Score Ladder

Credit Score reflects your financial life which is a subset of your overall life. So, hard times that you go through in your life get reflected in your financial life and that dampens your credit report and then the credit score.

A credit repair is never too late and if done well, improves your credit score steadily over a period of time.  Improving credit worthiness is the key, as it signifies the financial wellbeing and also improves one’s credibility in the market to acquire loans, mortgage or even credit cards with decent limit.

You can slowly move up the quadrant of credit score by following few simple rules and diligently sticking to them over a period of time. One must understand that falling off the ladder is lot quicker than climbing one – but with caution and discipline it is achievable.


One thing that is common with people with high credit score is – Financial Discipline. This Financial Discipline is the key to credit repair too. So, how does one do it and where & how does one with low credit score start?

Following are the few basic steps to help repair your credit score:

  1. Ensure to check your credit report regularly so that all the financial information is being accurately reported and that no fraudulent transactions have been made in your name. You should dispute any negative items that you don’t think are yours or are more than 7 years old.
  1. Credit line increase – If your credit card company is willing to increase your credit limit without any additional information – go for it. As, it will improve your credit utilization ratio immediately.

**Do you know how much of your credit score is dictated by your payment history**


** So, let’s see how we can improve the payment history **

  1. Clear those old debts first – Old and long pending credits and loans tend to dampen the credit score harder than the relatively newer ones. So, try and clear off those old debts first.
  1. Pay regularly – Do not give long gaps between payments to the creditors. Even if the payments are less than the installment amount – do make that payment to keep the continuity and the creditors in good terms. As any judgments, foreclosures or delinquencies reported can be very damaging on the credit score for several years.
  1. Pay off debt – Try to payoff outstanding dues even if it is small. It will lower the interest you pay and also improve your credit score.Low balances relative to your limit will add points to your score.
  1. Less usage – for some time till the credit score increases, limit your credit cards spends and prefer cash over credit.
  1. Consolidate – If you have too many credit cards and loans, try to consolidate as it is lot easier to manage and to keep track on spending and repaying.
  1. Pay bills on time – Just paying bills on time is one of the key ingredients for a slow steady credit score growth.
  1. Leave old paid debts on report – Don’t be in a hurry to knock off that old paid debt off your credit report. It will be removed after 7 years automatically – till then let it stay to show that you have a record of paying up debts.
  1. Monitor progress – If you are making efforts to improve your score then a smart move would be to ensure that your credit report reflects that too. You’re entitled for free,to one of each of your three credit reportsevery 12 months through AnnualCreditReport.com. Send for 1 every 4 months, and you can monitor your credit for free and it can reflect the progress.

Improving credit score is a slow and time consuming process and needs one’s patience and consistency. Stick to these simple rules and try and stay below permissible credit limit to avoid looking a risky client. Create a plan and live the plan for financial wellbeing and better credit score.

Few tips that always come handy are:

  1. Never spend more than you have
  2. Spread your regular payments over a period of time in a month so that they all don’t clash and make it difficult for you.
  3. Never cross 70-75% of your credit limit overall.
  4. Use your credit card sensibly and use it only on those where you are sure you can pay in full.
  5. Pending charges and bills is where trouble begins. Try and clear them every month and not let it pile up.

With all these credit repair help, you are on your way to look as attractive as possible to the lenders. Good luck on the financial discipline.

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