Banking makes customer credit scores one of the main considerations for approving. So that the smooth payment of credit or credit score needs to be maintained so that it remains in a good position. If your credit application is often rejected by financial institutions, it could be because your credit score is not in good condition so it must be fixed. Increasing credit scores can make it easier to apply for. You can also check out the highest credit score possible to set a realistic goal in improving your credit score.
Here are some tips to improve the credit score that you can try:
A. Actively using a credit card
A quick way to increase your credit score is to actively use a credit card. However, use a credit card wisely by using it for shopping at merchants that work with the credit card issuing banks or at places that offer attractive promos for credit card users.
B. Be on time in bill payment
If the credit card is actively used for transactions, the next thing to do is pay the credit card bill on time or before it’s due. Avoid late payments so as not to be subject to fines, especially to delinquency in payments because debt will increase due to the debt burden so that the credit score drops.
C. Apply for credit at the right time
Apply for credit or at the right time, or when your debt record does not exceed 30% of your monthly income. Try to pay or pay off the previous debt installments so that the debt portion goes down. After the financial capacity improves, then or credit to the bank can be submitted again. If you have a debt ratio of more than 30%, the bank will assume that you are a risky customer. Therefore, focus on paying off existing debts before submitting new debt.
D. Avoid making new credit cards
To increase credit score can be done by avoiding making new credit cards. The maximum number of credit card ownership to stay in the healthy category is a maximum of 4 credit cards. Therefore, don’t be easily tempted by credit card application promos offered by banking sales or marketing which are usually done by telephone.