Your credit score determines the loan approval decision and the APR interest that you will be paying. Having a higher credit score will make it less challenging to get a loan at an affordable rate. The following are 5 tips on how to improve your credit score within a period of 60 days.

1. Pay Down Your Debts
One way to get a higher credit score is to pay down all your existing debts. Not paying your bills on time can result in your account being handed over to the debt collection company and thus leaving a negative impact on your credit score. If you have multiple credit card debts, you can start by paying down credit card with the highest credit utilization ratio. This is because the FICO score is calculated based on the utilization ratio of each credit card.

2. Don’t Use Credit Card for Large Expenses

The second tip is to never use your credit card to pay for large expenses if you can’t pay back in full in one month and want to roll over to the next month. Rolling over your balance to the next month can result in the accumulation of a large amount of interest charges. If you intend to roll over the balance month to month, it is suggested that you apply for a zero percentage credit card with an introductory period that is long enough for you to pay down the debt in full.

3. Don’t Apply for New Credit Cards that are Unnecessary

The third tip is to never open new credit card accounts if you don’t need to. This prevents you from being tempted to spend more money and getting trapped in more debts. Every time you apply for a new credit card, a hard inquiry will be performed and it has the potential of dinging your credit score. The lender can see how many new credit card or loans you have recently applied on your credit report. Instead of applying new credit cards, you should stick to using your old credit cards and pay your bills on time to prove that you are financially responsible.

4. Review Your Credit Report Frequently

The fourth tip is to regularly review your credit report so that you know if there is any curious activities for example fraud charges. You can dispute the inaccuracies on the credit report and get your credit score back to the right level.

5. Raise in Credit Limit

Another tip is to call the credit card company and ask them to increase your credit limit. Higher credit limit means a lower utilization ratio and a lower utilization ratio means a higher credit score. This strategy will only work if you don’t intend to spend the more after the credit limit is raised. You can easily request for a higher credit limit if you are a good customer to the credit card company. You can negotiate with the credit card company to raise the credit limit by $1,000-$2,000.