How Credit Management Strategies Increase Your Credit Score

Many people view their credit score as a mysterious number that can fluctuate if you breathe wrong. However, your credit score and managing it is an important part of both personal and business credit. Your credit can affect everything from your ability to get new lines of credit to your interest rates when you do get new lines of credit. This can make all the difference in your cash flow when you are a business owner.

The best, most effective way to increase your credit score is with credit management strategies. While this may sound like a complicated process, it really just means by being responsible with your credit.

Pay Bills on Time

One of the best ways to affect your credit score positively is by paying all of your bills on time. This accounts for a large percentage of your credit and serves the purpose of telling potential creditors about your payment habits and what they can expect if they lend you money. If you are behind on payments, get everything current and keep it that way. It may take several months of paying every bill on time to undo the damage that delinquent payments may have done, but it will be worth your diligence to see your credit rise.

Lower Overall Debt

Another aspect of your credit score is the amount of overall debt that you have. Not just your overall debt, but the amount of debt you have on your credit cards in comparison with your credit line. When you have several credit cards maxed out, you can expect a dip in your credit. Lowering your overall debt can significantly improve your score.

Limit Your Open Lines of Credit

Finally, limit the number of lines of open credit that you have. The more open lines of credit you have, the more adversely your credit score is affected. Lenders want to see responsible payment histories and a manageable number of lines of credit. No one wants to lend money to someone who has ten open lines of credit. Who knows when you might forget to pay number eleven?

It takes only one or two bad decisions to drop your credit score significantly, but it can take months to get your credit score back under control with good credit management practices. The most important thing that you can do is stop doing damage to your credit score and immediately begin taking steps to repairing your credit.


No person should rely on the contents of this publication without first obtaining advice from a qualified professional person. This publication is sold on the terms and understanding that (1) the authors, consultants and editors are not responsible for the results of any actions taken on the basis of information in this publication, nor for any error in or omission from this publication; and (2) the publisher is not engaged in rendering legal, accounting, professional or other advice or services. The publisher, and the authors, consultants and editors, expressly disclaim all and any liability and responsibility to any person, wether a purchaser or reader of this publication or not, in respect of anything, and of the consequences of anything, done or omitted to be done by any such person in reliance, whether wholly or partially, upon the whole or any part of the contents of this publication. Without limiting the generality of the above, no author, consultant or editor shall have any responsibility for any act or omission of any other author, consultant or editor.

Source by Ferdi Nel

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