2. Maintain a Low Balance: Another factor that disturbs your credit score is - high balances in your credit cards. Having a balance more than the credit limit also hampers your credit reports.

You can spread your debt over different cards keeping your balances below 35 percent of the credit limit. But be sure that you make payments for each card at required due dates. Maintaining a low balance will increases your chance to boost your scores instead of dropping it.

3. Good Credit History: A good credit history is another key factor that plays a very effective role in your credit score. The history of the track record you have established in making payments and managing credit over time is your credit history. The longer and positive credit history with each creditor will offer you rewards even if the account is not active.

So, it’s better to avoid closing your older or unused accounts. This doesn’t mean that having too many accounts will benefit you, instead having 5 or 6 accounts with posit credit history will enhance your luck to enjoy other related benefits.

4. When and How to Choose a credit Card? : It’s a good idea to apply for credits only when it is needed. Suppose, if you are going for a big purchase, you can use the credit card to get discounts or good financing deals by the store keeper on your purchases.

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