A poor credit score can be an obstacle in setting up utilities and renting an apartment. It takes longer to mend a bad credit score than to build a good one. Wondering how you can improve your credit score? Here are some tips.

Pay Your Bills on Time

It’s a good idea to set up payment reminders online or note down your payment due dates on a calendar or planner. Paying your bills on time can increase your score in a few months.

Don’t Apply for New Credit Frequently

Although having multiple accounts increases your total credit limit, opening several new ones in a short period can harm your credit score.

Keep Your Unused Credit Accounts Open

The older your credit history is, the better it is for your score. This is exactly why you shouldn’t close your old credit accounts even if you hardly use them. If you do need to reduce the number of accounts you have, close the newer ones.

Pay More than Once During a Billing Cycle

If it’s feasible for you, pay your bills twice during a billing cycle instead of following the usual once-a-month style. This lowers your credit utilization and is a sure-fire way of improving your credit score.

Review Your Credit Report

You can get a free copy of your credit report once every year from each of the three major credit reporting agencies. Review your credit report thoroughly to check if there are any errors. If you do find any false information, dispute it with the respective reporting agency immediately. Your credit score improves as soon as the errors are rectified.

Pay Off Your Old Debts Carefully

If any debt is marked as being charged off, it means the creditor no longer expects any more payments. If you make a payment on a charged off account, it not only lowers your credit score but also reactivates the old debt. This is more likely to happen if a collection agency is involved.

Clear Off the Balance on Maxed-Out Credit Cards First

If you use several credit cards and there are one or more of them on which the balance is close to the credit limit, pay off those first so that your credit utilization rate comes down.

Following these tips can help you have a healthier credit score!