February 23, 2021 By Kevin | This article may contain affiliate links. For more information visit our Disclosure


Your credit score tells a lot about you. It is the tool that financial institutions use to gauge your money management skills. It is also a significant factor used to determine how much you can borrow and at what interest rates.
Granted, having a good credit score can make life easier for you. If you have trouble building and maintaining a good credit score, here is what you need to do.
Get a Credit Report
The first thing you should do if you want to build your credit score is to get your credit report. That way, you will know the areas you should improve to get a better rating.
For instance, if you are good at paying bills but max out on your credit cards often, you will see it in the report. With such analysis, you can see your strengths and create a strategy to improve your weaknesses.
Pay Your Bills On Time
If you look at how leading credit bureaus analyze consumer credibility, you will notice that an individual’s payment history carries the most weight in determining their credit score. Usually, the payment history takes at least 35% of the financial credibility analysis. This is why you should be punctual in paying bills.
If you often forget the dates when bills are due, consider creating a digital planner to remind you when you need to pay various bills. You could even activate alerts to remind you of the deadlines, so you are never late in paying a bill. According to IT expert Adrian Jones, using technology can go a long way in improving your finances. 
Another trick is to have your bank deduct your dues automatically as soon as the money hits your account. That way, you will not have a hard time paying your bills.
Alternatively, consider charging your bills to your credit cards so they are deducted when they fall due. Doing this can go a long way in improving your credit score.
Limit Your Use of Credit Cards

Another critical step in building credit is using credit cards with caution. If you are reckless with your credit cards, you may soon find yourself steeped deep in debt.
A good rule of thumb is always to spend less than 70% of your credit limit. That way, you will rarely be tempted to exceed your limit, and you also have reserve money for emergencies.
If you need more credit, don’t hesitate to ask your credit card company to extend your limit. Fortunately, this is a simple process that you can do online from the comfort of your home. A higher limit means that you will spend a lower percentage of your credit, which will reflect positively on your credit score.
Consolidate Your Debt
If you are indebted to multiple lenders and want to reduce the interest you pay, you should consider consolidating your debt. This is where you bring all your debt under one lender so you can enjoy lower interest rates and have better control of your finances.
Consolidating your debts means that most of your debt is paid off faster, which is good for your credit. Consider talking to a personal finance expert to know the debt consolidation options that are best for you.
Conclusion
There is no denying that having a good credit score is good for your financial health. If you follow the four steps on this post, you should find it much easier to rebuild credit and enjoy the benefits that a good credit score has to offer.





Kevin has been a professional writer in personal finance and business topics for over 20 years.