Improve your poor ITC score

One of the most crucial indicators of your financial wellness is your credit score. It reveals to lenders how responsible you use your credit in a glance and the higher your credit score, the easier it will be to be approved for additional loans or lines of credit. A higher credit score can also help you get the best attainable interest rate when borrowing. If you would like to improve your poor ITC score, there are a few quick and easy things you can do.

To increase your credit score, you should be aware of what factors may be working in your favour, and this is where monitoring your credit history comes in. Take a copy of your credit report and go over each one to determine what's helping or damaging your score. A history of on-time payments, low credit card balances, older credit accounts and few credit inquiries all contribute to a higher credit score.

Your payment history is one of the most essential aspects in determining your score and having a long history of on-time payments can help you improve your credit score. To do so, make sure you don't miss any loan or credit card payments by more than 29 days - as payments that are at least 30 days late can be reported to credit bureaus and harm your credit scores.

Another factor that contributes to an improved credit score is to aim for 30% credit utilisation or less. The most straightforward strategy to keep your credit utilisation under control is to pay off your credit card amounts in full each month. A further strategy to improve your credit utilisation is to request an increase in your credit limit. Increasing your credit limit can improve your credit more efficiently as long as your balance does not rise at the same time.

While you may need to open accounts to grow your credit, you should generally restrict the number of credit applications you submit in order to improve your credit score. Each new application may result in a hard enquiry, which is when a lender seeks to review your credit record as part of the loan application procedure, which may lower your score and have compounding effects at the same time. Opening new accounts will also reduce the average age of your accounts, which can also lower your score.

Additionally, to improve your credit score, it is advisable to not close outdated credit accounts that you're no longer utilising. Though the credit history for those accounts will remain on your credit report, cancelling cards while carrying a load on others will reduce your available credit and increase your credit utilisation ratio and this could result in a few points deducted from your total score.

At Ayoba Loans, we understand how frustrating it may be to improve one's credit score. We think that everyone has a chance at financial freedom, therefore our services can help you build you reputation and get back on your feet.