Most people don’t actively work towards maintaining or improving their credit score. In fact, many people seldom check their credit score until it’s time to apply for a new loan. The thing is, your credit score rating has a big impact on your life, and can affect your chances of getting a new apartment, a job, and even a competitive premium for insurance policies. Fortunately, if your credit score is less than impressive, there are certain things you can do to improve it. Here’s what you need to do.

Check your credit score

Checking your credit score will help you determine where you stand, based on which you can decide what you need to do to improve your credit score rating.

Try to repay your debts

Although this is easier said than done, you may want to consider paying off a few of your debts, especially if you have some excess money in hand. Doing this will bring down your credit utilization, which will, in turn, increase your credit score. What’s more, you are also likely to save money on interest payments.

Make payments on time

Making bill payments on time is important if you want to keep your credit score up. Creditors usually report payment defaults to credit rating agencies, so missing your payments can have a significant impact on your credit score.

Ask for an increase in your credit limit

If you’ve managed your finances responsibly, you may be eligible for a higher credit limit. An increased credit limit will decrease your credit utilization and improve your score.

Avoid closing old credit card accounts

When you close old, unused credit card accounts, you bring down the average age of your credit accounts and increase your credit utilization. Both of these factors can lead to your credit score dropping.

Don’t apply for new loans or credit cards

When you apply for a new loan or credit card, the creditor performs a hard inquiry into your credit history. Hard inquiries can lower your credit score temporarily, so you may want to put off applying for any new credit.

Your credit score indicates how financially reliable you are. So, ensure you do what’s necessary to improve your credit score!