Credit score ads your financial report on the performance of the timely payment of your debt, credit card bill, postpaid bill, or any government penalty you paid on a timely basis or not?

credit report is a crucial element nowadays simply because there is a lot of risk involved in lending money, and banks are very cautious with it. Before lending money the bank needs to make sure that you don't have any unpaid bills or bad debts, and for that reason they check your credit ratings.

The most important parameter that one must follow is that they must ensure that their credit score is high at all times. The following are the ways you can follow to keep a high credit score:

- Watch the credit card balances. Make the payments on a monthly basis and don’t let it spill over by paying just the minimum amount due. - - You will be charged a heavy interest on the remaining balance.
- Eliminate nuisance balances. If you have credit cards with small balances due, then clear them off at the earliest or transfer it to another existing card. This way you are not polluting your credit report with a lot of balances.
- If you have diligently paid off a debt, then leave the record in your credit report.
This way future lenders will know that you are serious about making a commitment to paying off a loan and you do so in an orderly manner. This makes you an ideal customer.
Why is it important for me to know my credit score?

Knowing your credit score enables you to make better credit decisions. Almost all financial lending institutions evaluate your credit score before approving your credit application. Having a bad credit score increases the chances of your loan application being rejected. Flipside, a good credit score improves your chances of negotiating a lower interest rate.