when you decide to apply for a new credit or loan the first thing that comes to your mind is how good is your credit score.it is very important because the lender or borrower will judge your creditworthiness how potential you are as an borrower and then they will evaluate your score.it is a 3 digit number which ranges from 300 to 850.given below are some tips which will help you to repair your credit score.
1.Always pay in time and don't miss any payment because if have not made your payment within 30 days your credit score may be reduced by 50 points and can be sent to collection.so pay it off even if your account is in collection.you can pay your bill through bank account in order to avoid late payment.
2.Always try to shop for new credit within a 30 day period especially for auto loan and mortgage which will help you to score better.also don't open many account at a time as it will effect your credit score when comparing your available credit limit and credit used also it will reduced the average age of your account and reduce your score.
3.Don't move your debt from one account to another just try to pay it off , because it will lower your score as the amount of debt is same but the account opened are few.
Try to keep your debt to credit utilization by 30% of your credit limit in order to increase the length of your credit history.
4.whenever you are allowing anyone to use your credit card account keep things in mind that the authorized person does not misuse it or spend more which you will not be able to pay it off later,it will effect your credit score.
5.Don't use too many store cards which are not affiliated to a national creditor like master card ,visa card .Credit bureau considered this as risky as this are way to get into debt.
6.whenever there is a change in your name you should report to the credit bureau even the address remain same otherwise the credit bureau will prepare a separate credit report which will effect your score.
7.Check your credit report on a regular basis for any discrepancy.
This will help you to score better and qualify for getting credit at a better rate of interest.