Cut down balances
Credit balances affect the credit score at least by 30 percent. While there are a lot of people who believe that by making routine payments and not exceeding their credit limits they can maintain a good score, it is not true. It does not make a difference if you always make payments on time, but your credit score will suffer if the credit card balances are close to the limit. A good way to increase a bad or normal credit score is to clear all your debt. Try to cut down the balances by at least half, even if you cannot pay off the full credit card amount.
Keep old accounts open
Know that credit history is important when it comes to credit scoring. A few people pay off their debts on their credit cards and then close their accounts. If you wish to improve your score by 100 points, then never deactivate your account. Therefore, it is always better to cut the credit card in half rather than closing it down permanently.
Keep different credit cards
You can also boost your score by getting hold of more than one credit card. It is advised that you obtain three to four cards instead of ten. Also, try to get involved in other forms of credit such as, instalment loan, student loan, home loan, auto loan, etc. These types of loans are not termed as bad debt as the terms are normally fixed and they are easier to pay off. Moreover, you should know that credit card debt can stick for a lot of years. Basically, you should try to diversify the risk of not paying your loans.