LOW credit score? 7 tips to improve your financial health
Here are seven tips to help you improve your credit score in the financial year 2025
lifestyle May 24 2024
Author: Richa Barua Image Credits:Freepik
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Review Your Credit Reports Regularly
Obtain free copies of your credit reports from the three major credit bureaus (Experian, Equifax, and TransUnion) at least once a year.
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Pay Your Bills on Time
Set up automatic payments or reminders to pay all bills. Payment history makes up 35% of your credit score, so consistent on-time payments significantly boost your score.
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Reduce Credit Card Balances
Aim to keep your credit card balances below 30% of your credit limit. If possible, pay off the balance in full each month.
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Diversify Your Credit Mix
Use a mix of credit types responsibly, such as credit cards, instalment loans, and mortgages.
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Maintain Older Credit Accounts
Use your oldest credit cards infrequently but keep them open.Older accounts might boost your credit score because 15% of it is based on credit history.
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Avoid Opening Too Many New Accounts Quickly
Be selective about applying for new credit accounts. Each application can result in a hard inquiry on your credit report.
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Pay Down Outstanding Debt
Focus on paying down existing debt rather than moving it around. Prioritize high-interest debt to reduce the overall debt load.