A credit score is a numerical expression based on a level analysis of a person’s credit files, to represent the creditworthiness of an individual. A credit score is primarily based on a credit report, information typically sourced from credit bureaus. A credit score is based on credit history: number of open accounts, total levels of debt, repayment history, and other factors. Lenders use credit scores to evaluate the probability that an individual will repay loans in a timely manner.
Credit score affects your financial life significantly as it plays a key role in a lender’s decision to offer you credit. A credit score of 500 and below is considered poor and this results to financial institutions declining you loan request. Below are some ways to improve your credit score:
1. -Paying your loans on time: consistently making credit card and loan payments on time is one of the biggest factors of your credit score. Set up reminders on your phone or email so you don’t miss a payment. Six months of on-time payments are required to see a noticeable difference in your score.
Secondly, you can cover your payments on time by changing the dates your payments are due. Set up your payment schedule based on when you get paid. Consistent and timely payments have a big impact and will greatly improve your credit score over time.
2.Increase your credit line: If you have credit card accounts, call and inquire about a credit increase. If your account is in good standing, you should be granted an increase in your credit limit. However, it is important not to spend this amount so that you maintain a lower credit utilization rate.
3.Work with one of the best credit repair companies: If you don’t have the time to improve your credit score, credit repair companies will negotiate with your creditors and the three credit agencies on your behalf, in exchange for a monthly fee. Additionally, given the number of opportunities that a great credit score provides, it could be worthwhile to utilize one of the best credit monitoring services to keep your information secure. Dispute Wrong Information on Your Credit Report. There are several Kenyan individuals offering these services on freelance basis on upwork
If you check your credit report and notice that there’s wrong information, take action to resolve it. Dispute any errors promptly. Consistent credit fix reviews will improve your credit score as well as develop the habit of staying on top of any inconsistencies.
4. Don’t close a credit card/ loan account: Once you pay off a loan or if you are not using a certain credit card, you may be tempted to close the account. However, in order to keep your credit score higher, you should actually keep the credit card open.
5. Pay Off Owed Money
The amount of credit you have versus the amount of credit you’re using is a factor in your credit score. Stop borrowing money and pay off what’s already owed. This is one of the best ways to relieve stress and improve your credit score fast.
Your credit score is one number that can cost or save you a lot of money in your lifetime. An excellent score can land you lower interest rates, meaning that you will pay less for any line of credit you take out. But it’s up to you, the borrower, to make sure that your credit remains strong so you can have access to more opportunities to borrow if you need to.
At Bidii Credit we have personal credit managers who will be at your disposal to give you FREE advise on your credit before you take a loan. You can call us any time for a loan review or as for a callback by visiting us on https://www.bidiicreditkenya.co.ke/contact-us