ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Paying your bills on time Is one of the most important steps in improving your credit score. Pay down your credit card balances to keep your overall credit use low. You can also phone your credit card company and ask for a credit increase, and this shouldn’t take more than an hour.

Detailed explanation-2: -You want to make sure your balance is low when the card issuer reports it to the credit bureaus, because that’s what is used in calculating your score. A simple way to do that is to pay down the balance before the billing cycle ends or to pay several times throughout the month to always keep your balance low.

Detailed explanation-3: -Paying off credit card debt is smart, whether you zero out your balance every month or are finally done paying down debt after months or years. And as you might expect, it will affect your credit score. Whether you are chipping away at a balance or eliminating it with one big payment, your score will likely go up.

Detailed explanation-4: -The best time to pay a credit card bill is a few days before the due date, which is listed on the monthly statement. Paying at least the minimum amount required by the due date keeps the account in good standing and is the key to building a good or excellent credit score.

Detailed explanation-5: -Use a balance transfer credit card. Consolidate debt with a personal loan. Borrow money from family. Pay off high-interest debt first. Pay off the smallest balance first.