We all know what an excellent credit score means; it guarantees us regular credit and cheaper loans among other benefits. To some it’s quite elusive but really it is quite easy to acquire an excellent credit rating. Here are five steps that can help you achieve it.

Timely payment of your bills

Late payment of bills not only attracts penalties but also has a negative effect on your credit score. If you pay your bills when they are due, you’ll not only be reducing your debts but also improving your credit rating. To make sure you pay bills on time, make a list of all your bills and include the dates they are due. Keep this list in a conspicuous place and ensure you visit it every week. This will ensure that you’re in tune with your bills and none will fall behind schedule.

Lower your credit utilisation ratio

Credit utilisation ratio affects your score, if it’s too high it starts to suffer. Your credit utilisation ratio can be lowered by adjusting your spending. Ensure that you don’t use all the available credit. Also ask your company to increase the limit but keep your use within the limits. This will automatically reduce your utilisation ratio.

Living within your means

Living beyond your means is a sure way to get into debt, most of which you may have some difficulties paying. If you only buy what you can afford to pay, you’ll be in good books with your financiers. Avoid borrowing money to buy something which you can do without. Make sure you have enough to save for investment as well as for emergencies, with such sound financial plans; you’ll have limited your credit card use, reducing the chances of being blacklisted by your creditors.

Monitor your score

You’ll need to monitor your credit score on a regular basis. Find out where it stands, if you discover some mistakes that can lower it, correct them as soon as possible.

Stick with old cards

The longer you have held the card and maintained regular payments the higher the chances of getting a good credit score. It pays to hang on your old cards; you stand a better chance than a person who has recent cards, especially from multiple companies.

Work on improving your credit score, with these tips, you’ll be headed in the right direction paving the way for guaranteed and cheaper credit.