You can improve your credit score by cultivating good financial habits. You should:
- Pay bills on time (indicating good financial management habits)
- Maintain a low balance
- Pay off high-interest debts first (reducing debt can improve your credit score, immediately compare balance transfer plans)
- Monitor your credit utilization (high credit utilization can lower your credit score)
- Regularly check your credit report and correct any errors (incorrect information could lower your credit score)
- Check your credit score before borrowing (understand the best rates you should be eligible for)
- Compare loans, credit cards, mortgages, and other credit products (providing your ID number for price comparisons or quotes can affect your credit score.
You should not:
- Default on debt
- Only make minimum payments (this indicates financial strain)
- Only use cash (this doesn’t leave a good credit record)
- Apply for too many credit cards in a short period (this suggests urgent need for funds)
- Compare credit card offers and only apply for the ones that suit your needs, reducing the chances of your credit score being lowered.