Having a good credit score certainly pays off when you wish to apply for a new credit card or wish to refinance your mortgage. You might have already been following the healthy credit practices, but these tips will help you get a better credit score faster.

Pay twice in  a month

You might have had a series of rough months. Let’s say you had to buy a new washing machine or got some renovation done in your apartment. You can buy the items required through a credit card to get good rewards. However, it will have a negative impact on your credit score along with the utilization ratio. It is a good idea to make payments a couple of weeks prior to the closing date and then make one more payment right before the closing date. However, you must have money to pay off the expenses by the end of the month. Never use a credit card for this purpose as you will have a lot of debt while doing so.

Raising the credit limit

This option is only suitable for you in case you can control the urge to spend. Increasing your credit limit will reduce your utilization ratio. At the same time, you need not be compelled to use the newly available credit that you have. Before you even apply for an increase in the credit limit make sure that your situation looks stable. If not, then the issuer would get an illusion that you need a lot of money urgently and would end up denying your request.

This tip would work wonderfully as far as you have been a good customer and your credit score is above average. Know exactly the amount which you would want to ask. Always propose an amount higher than that in case your issuer would want to negotiate. Having a less utilization ratio immensely helps in improving the credit score.

Credit Mix

Not many people realize the importance of a  credit mix. Your credit score can improve a lot if you display a credit mix. For instance, let us say that you already have a housing loan. Now if you wish to buy a new car, buy it on a loan for a good rate of interest. This will show a credit mix which increases your credit score excellently.

This strategy will help you if you have a lot of time in hand. Remember that in the beginning, your score might as well drop. But after paying the installments on a regular basis, you are sure to see the results. If you are planning on applying for something big such as refinancing your mortgage, then this trick would not help. It only works when you have time to get the credit score right.

Manage your applications

Did you know that each time you apply for a new credit, a hard inquiry is done on your report? This reduces your credit score for the time being. You should do the necessary research first instead of getting the application denied. Also, keep the hard inquiries as minimum as you can, especially when you are applying for a huge loan.