How can people improve their credit score, and why is it important?

[Frank]

When you talk about someone being able to improve on their credit score, it's only going to be applicable to those who are making use of credit card because anyone who is making use of debit card doesn't have any business when it comes to improving credit score. I'm using debit card.

Credit score can also relate to when one is able to take up loans and this is different from whether you are making use of credit or debit cards. Most financial institutions that are giving loans will want to have a look at your credit score before deciding if you are qualified or not to take up loans.

 

[Heatman]

Credit score can also relate to when one is able to take up loans and this is different from whether you are making use of credit or debit cards. Most financial institutions that are giving loans will want to have a look at your credit score before deciding if you are qualified or not to take up loans.

Your credit score will never be increased if you are not borrowing money and repaying it which is going to show up in their system whenever they're try to pull up your financial record. It's the same thing with using a credit card. You basically get a loan of money to use and pay back. If you don't pay, your credit score will drop.

 

[Good-Person]

Your credit score will never be increased if you are not borrowing money and repaying it which is going to show up in their system whenever they're try to pull up your financial record. It's the same thing with using a credit card. You basically get a loan of money to use and pay back. If you don't pay, your credit score will drop.

I think that the best way to improve your credit score is to return the loan way before its actual due date. However, I think that it entirely depends on the kind of amount you tend to borrow in the first place. Your actual net worth and financial position may also play a very huge role when it comes to improving your credit score.

 

[Grant]

Spend. Simple as that. The more you spend, and pay off your debts, the more your credit score will go up. The better your credit score is, the bigger loans you can get. What I've been told to do, is get a credit card with low interest, and use that to buy your food, clothes, supplies, etc. Then when you make those purchases, pay them off as soon as you can.

What I have considered doing was to get a credit card, and only spend what I have on me, so that I can pay it off almost right away. This builds credit up, especially if you pay it back in due time.