We already talked about what is a credit score. Now I want to share my experience related to increasing your credit score.

Why would you want a higher credit score?

Its simple, better loans. Having a higher credit score will make your life easier when you want to get a loan from the bank.

Before any bank approves your loan, it will check your credit score. The higher it is, the better. Each country has its own regulations on this, but it works pretty much the same everywhere. (correct me if I’m wrong in the comments).

So, here is my advice:

Pay your installments on time.

If you don’t, each month, your credit score will stay the same or go down.

Pay your installments in advance.

This usually needs strategy and discipline, but it’s doable. And always…reduce your period of the loan, not the total amount(this applies on long periods mortgage loans).

Get a credit card!!!

I think this is the best thing you can do. Actively using a credit card can increase your credit score a lot and fast, but make sure you pay your debt in time. A couple of years ago, because of a stupid bureaucratic issue, i got a very low score because of some administrative taxes I didn’t pay. In 1-2 years, using a credit card and paying my debt in time, I managed to turn my score around and have a score of 600+(from a bad 400).

Conclusion

Pay everything in time, start saving money , and make sure you don’t fall behind your bills. Your credit score will increase in time if you have a little discipline.

You can use our simple loan payment calculator if needed.