July 28, 2021

How to improve your credit score and fund your expenses easily

By : Ellie Brown

Debt is a term that many people are scared of. Many sources give you knowledge about debts and their side effects.

Most people think debt is a negative source for many people, but it has a positive side. You can make use of the debt in a positive way and improve your financial situation.  You should know how to use that debt in your favour.

The beneficial side of debt

You can multiply your returns by using it in an exponential form. You can use your borrowed money to increase your return by using leverage.

It will help you achieve the required return, but there is a greater risk of losing your capital. If you are borrowing guaranteed loans from direct lenders, you can use it as an advantage and boost your credit score.

In the case of insurance, you can use your credit scores to determine the level of risk as there is a direct relationship between the credit score and claim activity.

Ways to raise your credit score

  • Check your credit report

You can have access to free credit reports by various credit reporting agencies such as TransUnion, Equifax and Experian.

To improve your credit score, you can find errors in your report to check the flaws and how to resolve them.

Look for negative factors that lower your credit score and work to eliminate them from your credit report. You can improve your credit score by debt reduction and making bill payments on time.

  • Bill payment on time

To avoid any error in your credit report, you can set up your payments in an automated process. Either you can set up email alerts or use the bank’s bill pay service. This will help you to avoid any gap in your payment methods.

  • Pay off collections

To increase your score, you can improve your pay off the collection. If there is a debt that has gone into collection, it will stay in your credit report for a minimum of seven years.

  • Get hold of past due bills

To maintain a good credit score, try not to miss any payments and if in case you miss out on any payments, try to catch up to it as soon a possible.

A missing payment leads to a reduction in credit score by almost 100 points. It may affect your credit score initially, but your credit score depends on the recent activity, so focus on your day-to-day activities and try to maintain your payment cycle.

  • Keep your credit cards low on balance

To improve your credit score, maintain a maximum balance of 10% or below. Keeping a balance over the limit or close to it will lower the credit score.

  • Do not transfer your debt

Your balance transfer will increase your debt load. You may transfer the balance to lower your interest rate but do not continue it as it will severely affect your credit score.

According to major financial sources, paying off your debt completely is the most effective way to boost your score.

  • Do not close unused credit card accounts

If you have any unused credit card accounts, do not close them as it will lower your credit score. Let them remain open as it is an indication of your credit management in an effective way.

Check with all the factors before closing your unused accounts, as a long credit history contributes to a good score.   

  • Get new credit within a short time

You can always access your credit report, and in case of borrowing a further debt, i.e. a car loan or a mortgage, you can check your credit report and determine your rate of interest.

You can borrow more credit from many trusted lenders such as Fortnitemoney and secure your borrowing. Remember to inquire a little less as too much inquiring can negatively impact your credit score.

  • Prefer credit mix

Most financial institutions prefer their borrowers with a mix of both instalment loans and credit cards.

You can keep one or two credit cards with you if you plan to pay off your loans, such as car loans or student loans. Having at least will prove your credit management and create a good image.

  • Be careful while applying for more credit

If you do not require credit, do not apply for it. Do not apply for any credit just to boost your score. Do not open several accounts together, as it can negatively impact your credit score.


As against the traditional school of thought, debt can prove beneficial for the borrowers if used efficiently. However, it can lead to a downfall of a borrower but can prove to be a boon if used in the right manner.

Debt can help individuals to make purchases that they cannot afford otherwise.  

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