Hacks on how to improve credit score- All you need to know!

If you want your credit score to spike every other month, here are the tips that you should follow. Before you know how to improve credit score, you must have a basic concept of what the due date, statement date, and statement balance are.

Due date: The date by which you must have paid all the credit card dues of the month. It falls on the same date each month. It is one of the most basic concepts you have regarding how to improve credit score.

Statement date: The date when the credit card issuer prepares your statement, calculates your monthly interest charges, and posts your credit card statement to your online account. Generally, this date occurs 20-25 days before the due date.

Statement balance: The balance that you carry on your statement until the next month. This balance stays on your report until the next cycle, even if you already made the payment.

The information on your due date, statement date, and statement balance is available in your credit report. You can easily view the information in the mobile application of your bank.

1. Take care of your credit score due date and statement date.

Make sure that you are paying all your credit card debts before the due date. Even if somehow, you couldn’t pay all your debts within the due date, make sure you are not carrying any outstanding balances on your statement. A balance of more than 30% of your credit limit on your statement will negatively impact your credit score. Most credit card users only know about the due date and they keep wondering why their score drops down even when they make payments before the due date. You have the hack now! I REPEAT,  if you have a balance on your credit card while your statement is being prepared, your score will drop.

2. Try to make more than one payment within a month.

You can use the credit card as much as you want in a month, but when it comes to payment, try to split your payments into two. It is recommended that you pay half of your credit card debt 15 days before your due date and half three days before your due date.

3. Try to pay all your credit card debts within the due date for a nice credit score.

Not only this improves your credit score but also gets you rid of the monthly interest charge that you will otherwise have to pay to your credit card. If sometimes you can’t make the payments within the due date, ensure that they are paid before the next statement date.

4. Never have more than two lines of credit. I repeat NEVER.

The only lines of credit I recommend are the VISA and MASTER cards issued by financial institutions. You might sometimes encounter a situation in shopping malls and stores where someone offers you a credit card that you could use for shopping in their store or any other stores. It’s my recommendation that you never fall into this trap. When they do that, most of the time, they place a hard inquiry into your credit history. And when someone places a hard inquiry, your credit score might drop.

Therefore, never accept any credit cards from any agencies that are not your financial institution.

5. Do not close the account of the financial institution that issued your credit card.

It might have a negative impact on your credit history and credit report, so I recommend not to close accounts with the financial institution that provided you with a credit card.

Remember, credit card debt is often referred to as “bad debt” and it’s for a reason. Be careful, follow the simple steps that I provided and you will certainly see your credit score rise.

6. Never have a high credit utilization rate.

Believe me, this is the most important one. Never have a credit utilization rate of more than 30% if you want a decent credit score. What I used to do was use credit card for most of my transactions and pay the amount right away. But later realized that’s a bad idea and depicts that I depend too much on credit.

Read this to understand the basics of credit score and credit report Credit score and credit report! All explained.