When it comes down to managing your finances, nothing is more important than to know your credit scores. Forbes contributor Stacey Leasca points out the necessity of checking one’s credit scores in the face of potential cyber attacks on financial markets.But aside from keeping tabs on your credit data as a form of protection from hackers, it is also crucial to keep tabs on your credit rating as it also determines whether you are eligible for loans in the future.

Going beyond these reasons, your credit scores also speak volumes about your financial capacity. Keeping a good score with credit agencies means you are responsible enough to shoulder future obligations.This would enable lenders to approve your loan applications faster.

With that being said, here are some of the best tips that will surely pull your credit rating up.

Pay on time
If you have loans to settle, it’s always a good idea to not miss out on scheduled payments. By being committed to such an obligation, you should be able to watch out for your monthly dues. Making payments beyond the due date will certainly tarnish your credit record, on top of paying interest and penalties for the delay. In fact, late payments will stay in your record for up to six years, so you need to be mindful of your payment schedules in order to maintain a clean slate.

Pay more than the installment
Another way to increase your credit score is to pay beyond the set amount. In other words, if you are obligated to pay $300 every month for a personal loan, you can top it off by paying $400 instead. This allows you to settle your loans faster and, eventually, mark yourself as a low-risk debtor. Moreover, it will be easier for you to apply for future credit as banks are confident in your ability to pay up.

Limit your credit and debit cards
If your wallet contains numerous cards from banks, it’s best that you close those cards that you don’t need anymore. Why? Creditors will eventually ask you to show them these and will consider them in your file. The more cards you have, the less likely you will be able to improve your rating since they indicate that you have other financial commitments. The trick here is for you to limit the amount of cards you have and stick with the ones you need.

View your credit report
Before applying for credit, you will need to look at your file, which you can request in exchange for a small fee. Once you grab hold of your file, check if there are any inaccuracies in the data such as the dates of purchases and loan applications. Correct these errors together with your lenders. That way, you will avoid a downgrade as a result of inconsistent information.

Bounce back from a debt
Assuming that you have been unable to act on your commitments to creditors, you might as well make use of debt solutions such as a trust deed to resuscitate your credit record back to life. Although it will take time before you can start over with a clean slate, at least you won’t have to worry about getting rejections due to a bad credit rating.

Author's Bio: 

Lora Young is a fulltime mom and a blogger.