Improve Your Credit Score: 5 Ways to Accomplish Your Goal

There are a lot of factors that influence your credit score so if you want to improve it, you need to do everything you can to accomplish your goal. Here are some tips you may want to consider if you want to improve your credit score effectively.

5 Tips to Improve Your Credit Score

Check for errors

Studies indicate that 50% to 80% of all credit reports contain an error. Considering the fact that a single erroneous entry can lower your score by as much as 550 points, you better check yours to make sure it is accurate. To do this, request for a copy of your credit report from the 3 major reporting agencies (Equifax, Experian and TransUnion) and dispute any errors.

Be a responsible card user

Having a credit card can do wonders for your credit score, provided you pay your bills on time and don’t max it out. If you can’t get a traditional credit card, go for a secured credit card that reports to the 3 major credit bureaus or ask a friend or a relative to add you as an authorized credit card account.

Raise your credit limit

If you can resist the temptation to increase your spending habits, ask your credit card issuer to raise your credit limit.

Don’t cancel your credit cards

Keep your credit cards active since cancelling them can significantly reduce your available credit. Needless to say, this would not look good to a credit bureau.

Use different kinds of credit

Mixing up different kinds of credit (e.g. credit card, personal loan, auto loan, etc.) can give your credit score a moderate boost as long as you meet the payment schedule.

Put your personal finances in order. Book a free consultation with Terry Kime, CPA, at or connect with him on LinkedIn. With Paramount Business Advisors, managing your finances can be easier and more exciting than you have ever expected!

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