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There are many people who have fair or bad credit scores. Even when you have a fair credit score it is risky because, all it takes is one delayed payment and your scores will slip further. So, it is important to monitor your credit scores and credit rating at all times.

Sometimes, people tend to assume that keeping all the credit card balances at zero is the best thing to do. But that is not the case with the lenders. What lenders wish to know is your creditworthiness and for this they use your credit scores. Your credit scores will let them know if you are capable of paying back the credit you take. Otherwise, there is no other way that bankers can tell if you are a creditworthy person or not.

Banks are there to make money and if you have a fair credit score, then they will see you as a risky customer and may not be willing to give you credit. So, you must work on your fair credit score and bring it up to a good credit score. This will take time and will not happen overnight. It may take anywhere from a few months or even a few years depending on how earnestly you work on rebuilding your credit history as well as your credit scores. Banks are uninterested whether you have a zero balance or not. What they are interested in knowing is if you can pay the interest charges to the bank.

Ensure that you keep the credit utilization ratio low. This is essentially the amount of credit that a person will use out of the available credit limit. So, you must ideally keep the credit utilization ratio between 30 to 50%. This is one way of improving your credit scores.

Monitor your credit report regularly and obtain your free copy of the annual credit report. Look for errors in your credit report and get them rectified immediately.

Never close your accounts when you have a fair credit or a bad credit score. This will stay on your credit report. Always ensure that you improve your credit scores and bring it up to a good credit score before you close the card. Closing the accounts this way will do more damage than good.

So, if you have a fair credit score work on improving it. There are many people who don’t have a good credit score, but work on it very seriously.