A credit score reflects the trustworthiness of a person based on their credit history, and in our country, the FICO score is the most commonly followed model to identify a person’s credit score. If your credit score is low, you may face a problem getting a loan and credit limit from banks. So, here are a few tips to follow if you’re wondering how to improve a bad credit score:

1. Know your current credit score:  Based on the FACT Act (Fair and Accurate Credit Transactions Act), every citizen of the country is entitled to a free copy of their credit report from various credit reporting agencies once a year. Make the most of this and keep track of your current credit score. Also, you will know how to improve a bad credit score only after analyzing your current position.
2. Set reminders for monthly payments and installments:  Most people have different kinds of loan payments, credit card bills, and other financial commitments every month. Make a list of all these commitments and set reminders to pay off your bills to prevent unnecessary late charges. This goes a long way in improving your credit score.
3. Pay more than once in a cycle:  Do you have a low credit score? You can improve it quickly if you start paying off your installments and loans multiple times a month instead of just once. This adds to your reliability factor and also brings down your debt. If you can afford to do this, you should definitely opt for it. This way, you also repay your loans quicker and end up paying less interest.
4. Talk to your creditor if you cannot pay for a particular month:  Are you stuck in a situation where you cannot pay off your credit card bill or your home loan for the coming cycle? If you’re also wondering how to improve a bad credit score at the same time, make an appointment with the officials of the financial institutions where payments are due and discuss your situation with them. If your creditors agree to not report the late payment, it will not impact your credit score.
5. Do not own multiple credit cards:  Many collect multiple credit cards, but that doesn’t mean the spending capacity increases. Don’t apply for a new credit card just because it comes with discounts or offers; only get one if you need it. Also, getting multiple credit cards in a short span of time affects your credit score adversely.
6. Retain older credit card accounts:  This is quite a smart way to improve your credit score. The older your credit card account is, the more trustworthy you become and the better your credit score is. When it comes to choosing between older and newer accounts, choose to close new credit card accounts.