There are very few consumers disinterested in the idea of improving their credit score, yet there are a number of misconceptions that continue to persist regarding the most effective strategies for doing so. CreditUpdates.com, a company that provides a variety of services relating to credit scores, reports and monitoring, suggests that consumers engage in several demonstrably effective strategies for improving their credit score while also developing an understanding why it is important to be aware of the many ways in which a credit score can be influenced one way or the other.
According to the company, the most important strategy involves making a commitment to routinely review credit reports on a regular basis, with an annual review representing the minimal frequency with which consumers should review their report. During the review, consumers should make note of their credit utilization ratio (the total credit limit relative to the total credit utilized) and develop a strategy for reduction until it is 20 percent or lower. This will have an incredibly positive impact on a consumer’s credit score, so it is certainly worthwhile to make every effort to reduce this ratio as quickly as possible.
The other major influence on a credit score is the consistency with which a consumer keeps up with paying their credit debts, and a consistent positive payment history goes a long way toward ensuring a solid credit score. Utilizing the auto-pay feature for a credit card or setting reminders for each monthly payment are worthwhile strategies for ensuring these debts are consistently taken care of, and it is also possible that adding a new credit card will help in reducing a credit utilization ratio for the benefit of a consumer’s overall credit score.