Didn’t think it was ever possible? To go back in time and fix those irresponsible mistakes you made? Well, it’s not. But a few simple and quick fixes can help you change your credit score and your future.

Think of your credit score as a gateway to your financial health. A good credit score brings lenders and banks to you, whereas a poor credit score only helps to push them far away. It shows how responsibly you use your credit, making it easier to be approved for quick loans or mortgages. Avail benefits like low-interest rates and more, with a solid credit score. 

Read on as we discuss a few quick and simple strategies to improve your credit score. Like all good things, it might take some time to see an improvement in your credit score; however, it takes only a few hours to begin working towards a stronger credit score. All you would need are some good financial habits and bill payment reminder apps, like an electricity bill pay app

Review your credit history:

To work on building a better credit score, you will need to go all the way back. Checking your credit history will tell you what might be working in your favor (or against it).

Late or missed electricity bill and other utility payments, unpaid credit card balances, and EMIs can greatly affect your credit score. Reviewing your credit history often helps you see when and where you fared badly. 

Avoid late payments: 

Payment history can have the biggest impact on your credit score. Thirty-five percent of your credit score hinges on whether you have paid off your loans and debts on time. This is why it is better to have paid off your debts responsibly and on time, allowing them to work in your favor. 

Creating a filing system, maintaining due date alerts using a UPI banking app, and turning on automation for bill payments directly from your bank account are a few simple ways to preserve a solid credit score while avoiding any late payments at all costs.

Keep any old accounts open:

Have you heard the quote, “The older you get, the wiser you become?” Well, your old credit accounts experience that completely. This is due to the fact that the older your average credit age, the more desirable your score appears to lenders. Therefore, if you have any old credit accounts that are not being used, don’t rush to close them. Even though the credit history from those accounts will show on your credit report, closing credit cards can lower your available credit and in turn, increase your credit utilization ratio. 

Consolidating your debts: 

Debt consolidation is the most powerful tool for eliminating existing debt. It involves taking out a new loan to pay off existing credit card debt or loans. Rather than dealing with multiple loans, you’ll just have one payment to make, resulting in faster debt repayment. This can improve your credit utilization ratio, resulting in a stronger credit score.

Wrapping up:

It might take a few weeks, sometimes several months, to see an apparent impact on your credit score when you are trying to turn it around. However, improving your credit score is worth it. With some of the best rewards available – from low-interest rates to promising credit cards – even BHIM UPI and similar apps can be gateways to consolidating due payments on time.