10 Tricks That Will Improve Your Credit Score
Pay off your credit cards with a personal loan.
Paying down your credit card balances really widens the gap between your available credit and the amount you’re using, which is excellent for your credit score. If you’re in debt, this is a lot easier said than done. If you can’t pay your cards off immediately, consider moving the balances to a personal loan. Balances on such installment loans don’t affect your scores as strongly as balances on credit cards. Check with your local credit union first, since these member-owned financial institutions tend to offer the best rates and terms on personal loans. Consolidation enables you to obtain a lower interest rate. Interest charges can keep people in debt much longer than they need to be, and these seemingly small expenses add up quickly. However, if your credit card debts are relatively small or will be paid off in a short time, it might not make sense for you to consolidate. Consolidation is used mostly by people who believe there isn’t any other option to pay off their debt in a reasonable time.