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Having a good credit score is very important in order to improve your chances of getting a loan from your bank or money lenders. Nowadays bank and money lenders solely depend on the credit report in order to verify the credit worthiness of the person to repay the debts. It is very important to check your credit score at least once in six months to see where you stand. Even though you have a bad credit history you can still try to bring up your credit score by 50-100 points or even more.

Here are five ways to raise your credit score

Get a copy of your credit report from the three credit reporting agencies

If there is something on the report which is incorrect, contact the credit reporting agency to remove the incorrect item. This can be something as simple as multiple incorrect addresses which will make it appear you move frequently. For instance, if your address sometimes appears as 192nd Avenue and sometimes as 192nd Street it looks like two separate addresses to the computer. If you sometimes use a middle initial and sometimes spell out your middle name, this can create the appearance of more than one person.

Pay Bills Promptly

This is the single most effective strategy for raising your credit score. A good recent payment history can be fair enough to raise the chances of a better credit.

Carry less credit card debt

Lenders prefer to see a large difference between the debt you carry from month to month and the amount of credit available to you on credit cards.

Don’t close old or paid-off accounts

Again, it’s the gap between available credit and existing debt that has the impact on the credit score. It would be advisable on your end to avoid closing any old or paid off accounts as this strategy will only lower your credit scores. If reopening a paid-off account is a temptation for you, put the cards away where you don’t have easy access to them.

Avoid bankruptcy at any cost

Make sure to stay away from any type of bankruptcy as this can lower your credit score considerably. The record of bankruptcy is recorded in the credit report for at least 10 years and can create a bad impression in minds of the lender . By getting credit counseling, you show your sincerity and willingness to change your credit habits and improve your credit score.

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