If you are planning to get a loan, the lender or bank will definitely ask you about your credit score. Also known as the FICO score, these three digits can make or break your request for credit.

Now, you may not have paid attention to your credit score over the past few years, and it may also have fallen due to this. If this is the case and you need help on how to improve a bad credit score, here are five key tips for you:

• Pay more than the minimum due
  It seems simple enough to pay the minimum due every month and then forget about what you owe the lender. However, this is what lowers your credit score. Instead, make it a point to pay more than the minimum due each month as this will ensure that your debt is repaid faster. Additionally, this gives a good credit utilization ratio and leads to a better credit score.
• Have a mix of debt
  It might sound strange that you are being encouraged to have debt, but it is important to understand this. If you owe a total of $80,000, this debt should preferably be mixed in the form of several types like a mortgage, car loan, and credit card amount. If you have an $80,000 debt only in the form of a credit card loan, this makes you look like a very risky borrower. Also, remember that one of the things considered while your FICO score is calculated is whether you have single or multiple types of debt. This is a great tip on how to improve a bad credit score.
• Never deactivate old cards
  There may be old credit cards that you no longer use, and you might feel like closing these to be able to take out new debt. However, this can hurt your credit score. Instead of closing these out, you can simply keep the card at home and avoid using it. Yet, think about whether this card is charging you an annual fee. If they charge you annually while you do not use the card, it is wise to close it.
• Turn into an authorized user
  Did you know that being an authorized user on someone’s account can really help you? This is because the added credit history goes on your report as well. At the same time, ensure that the person has a good record of repayment, else this tip can backfire and damage your credit score instead of improving it. If you are unsure of whom to trust, a helpful tip on how to improve a bad credit score is to ask your parents to make you an authorized user on their accounts.
• Set payment reminders
  Your credit score can also be affected by unpaid bills. To stop this negative impact, set payment reminders to ensure that you pay your bills on time every month. You can also set up automatic payments with your credit card company so that there is no risk of forgotten payments.