Everyday Habits That Will Boost Your Credit Score

The state of your credit card, your liabilities or your assets, history of your transactions are collectively known as credit health.
 
In a world where the human civilization is evolving into great changes at a great pace, the economic reforms have also developed a lot.
 
We live in a materialistic world where everything has a cost and everything you want requires money.
 
The money could be used directly or indirectly. The payment could be in cash or by credit cards.
 
What is a Credit Score? 
 
Your Credit Report is a real Report with detailed insight about your Credit History. Your Credit Score is a number, on a scale from 350 to 850 that speaks to how likely you are to achieve your money related obligations. Moreover, a good credit score allows you to qualify for better rates and terms.
 
The classic credit score scale:
 
  • 350 - 500 Poor Credit  
  • 561 - 660 Fair Credit  
  • 661 - 725 Good Credit  
  • 726 - 760 Very Good Credit  
  • 761 - 850 Excellent Credit  
 
Strategies to Improve Credit Health  
 
1.  Regular payments: to have a clear and undisputable image in society, people should try to come clean with all their payment records. Try to make payment on the spot.  Do not delay them, as it will leave a bad impression on your credit history. If your payment is delayed by 30 days, a delinquency will be marked against your name in the credit record.
 
2.  Balance your credit card: do not be extravagant with your expenses; try to spend money wisely and moderately. You should try to utilize less than 35% of your total credit balance. This will let you manage your credit limits in an effective way and will give a good impression to the banks, lenders, or bureaus that you do not have a hard time paying back the debts or interest.
 
3.   Good credit report: try to maintain a good credit report. No one could have a perfect credit report, as everyone faces economic crises. The records should be accurate and up-to-date. If there is any inaccuracy, this will lead to a bad credit health and may decrease your credit score. In Canada, it is recommended by TransUnion Canada to regularly update credit records.  
 
4.  Stay loyal with your crediting history:  if you have a loan against your name, stay loyal to it. Try to pay your debt with dedication. Being a loan defaulter will affect your credit score with a huge blow! In addition, if there is any negative record in your credit history it will be staying there for good 7 to 8 years and thus going to cause a bad impression. 
 
5.  Do not apply for different credit cards in short time span: applying for different credit cards will give an instant impression that you must be a defaulter. Applying for various credit cards in different banks will intrigue them and they may start an inquiry about your credit history and credit score.