Financial institutions judge you and your credit standing on the basis on your credit score and quality of financial transactions. The credit score helps you to decide whether you deserve a personal loan or not. It also provides insights about the individual’s capacity to repay on time or falter payments in future. Also, how regular will the loan installment payments be, if in case the loan is sanctioned. Higher scores mean augmented capacity to qualify for a future loan and have credit at more favorable terms. This in turn will enhance your savings. If your credit history is not exactly the way you want it to be, then you’re not the only one. Refining your credit scores take long, but resolving them on time can bring in difference. This surely will shoot your credit scores up. A few ways to level up your credit score. How? Start paying your bills right on time, pay up debt at the earliest, put reminders for on time payments etc. To enhance your credit scores, begin by validating your current credit scores. While checking your credit scores, you will also have a sense of facets that largely impact your credit score. Here, your lenders and lending institutions will also signal the areas of focus. Obviously, some factors are more relevant while gauging your credit potential. Past transaction history and credit utilization ratios are the most important ones and together they make up for 70% of the credit score. Below highlighted steps can easily be taken to improve credit scores over a long duration of time. As we already know that a credit score talks about your credit behavior over time, with additional consideration of the latest information. Let’s have a look at the easy steps to improve your credit score: 1. Pay bills as per the stipulated time period When the lending institution accepts your verification request, it sends it forward for calculating your credit score. The lender is essentially interested in knowing your regularity of paying bills. This will assure them of all the doubts related to the borrower’s credibility. Basis your past history, lenders estimate your future of repayments. That is exactly why you must pay up all your bills on time, as per the stipulated time period. Paying your bills late or much later than committed can affect your future capacity to borrow from reputed financial institutions. Set up reminders to remember payments and not goof up! If you had been delaying your payments in the past, then refrain from doing the same now. Current debts should be paid up at the earliest 2. Use Credit for Paying Utility Bills If you’ve been paying up your utility bills on time, then it’s better to review your credit score. Set up a standing instruction to your bank/banking representative for a monthly uniform deduction. 3. Pay up Your Current Debt and Spend Less on Credit Cards Another important aspect of a credit score is the credit utilization ratio. This helps in accurately calculating the credit score. The credit card balances are added up and divided by the total credit limit. For e.g. if your credit balance arrived at Rs.4000, and the overall credit limit Is 10,000, then the utilization ratio is 40%. Lending institutions prefer a credit utilization ratio of about 30% or higher. A low credit utilization ratio conveys how meagerly you like to use your credit card and have cash transactions more. 4. Open New Credit Accounts When Required Avoid credit accounts if they are not urgently required. Do not overburden your account, have a great mis of liabilities and assets. More credit can harm your credit score, luring you to receive rejection frim multiple sources. 5. Keep the Unused Credit Cards Keep your unused credit cards safe, without closing them. Your credit utilization ratio gets affected with more unused credit cards. Lower credit scores are possible with fewer credit accounts. 6. Work on your Credit Report Discrepancies Check your credit reports beforehand to figure the discrepancies at the earliest. Get your reports verified by all top credit bureaus, they will signal the best one. Any wrong information can complicate your credit score further. If mistakes are not rectified soon, they will impact your credit score.