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A credit report or credit score consists of a three-digit number that lenders use to determine whether you will likely pay your debts back. Credit scores range from 300 to 850, with a higher score indicating better credit. The typical credit score ranges from about 600 to 720.


While many factors affect your credit score, here are the three most important ones:


  • Payment History: This is the amount you owe in debt as a percentage of your total available credit. Most people's scores are based on how much debt they have and how long it took them to pay it off. The lower your percentage, the higher your score.


  • Credit Utilization: Next is credit utilization. It refers to how much credit you are using each month — so if you're using $3,000 worth of credit per month but only have $2,000 available, then your utilization rate is 100%.


  • Amount Owed: This is simply how much money you owe compared to how much lenders consider you can afford to borrow at any given time. This number matters because it affects both how high-interest rates will be and whether or not lenders will approve future loans for borrowers with bad credit histories.



Your financial situation can be challenging to understand if you have bad credit. You might not understand how your bills report to the three credit bureaus or why managing your funds is essential. If you want to upgrade your credit score, we have gathered tried & tested tips on how to improve and recover your credit score for you to consider.

Robust Tips to Improve Credit Score

  • In order to improve one's credit score, one must set reminders for upcoming payments to get disciplined about paying back debt and loan installments.
  • Do not discard old bank accounts and credit cards. You must try and maintain your old credit card balances by paying credit card bills on time. Old credit cards tend to have a significant impact on credit scores.
  • You can also customize your credit utilization ratio. Every bank account or credit card has an allotted credit limit, and users must not reach or exceed this limit. Restricting credit card usage can have a positive impact on credit scores.
  • Check for any discrepancies in your credit report. If there are any false records present in the credit report, they must be resolved at the earliest.
  • If you are unable to improve your credit score on your own, you can take the professional help of a credit repair company.

Bottom Line

Having a decent credit score has a lot of perks & advantages. For example, it enables you to avail of additional offers, discounts, etc., on hotel bookings, flight bookings, etc.


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