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5 Quick Steps to a Better Credit Score
Learn how to manage your credit score and improve your creditworthiness
Think of your
credit
score as a picture of your credit risk. This picture reflects
your risk at a specific point in time. A picture does not change;
however, when you take another one, you will probably look a little
different. Similarly, when your credit information changes, your
score will also change to reflect the updated information.
There are steps you can take to ensure that each time a new
“credit
picture” is taken, it shows your best side. By observing
the following guidelines, you can influence your credit worthiness
for the better:
- Be punctual- Pay all your bills on time. Late payments,
collections, and bankruptcies have the greatest negative effect
on your credit score.
- Check your credit report regularly and take the necessary
steps to remove inaccuracies – Don’t let your credit health
suffer due to inaccurate information. If you find an inaccuracy
on your
credit
report contact the creditor associated with the account
or the credit reporting agencies to correct it immediately.
- Watch your debt – Keep your account balances below 50%
of your available credit. For instance, if you have a credit card
with a $1,000 limit, you should try to keep the balance owed below
$500.
- Give yourself time – Time is one of the most significant
factors that can improve your
credit
score. Establish a long history of paying your bills on
time and using credit responsibly. You may also want to keep the
oldest account on your credit report open in order to lengthen
your period of active credit use.
- Avoid excessive inquiries – A large number of inquiries
occurred over a short period of time may be interpreted as a sign
that you are opening numerous credit accounts due to financial
difficulties or overextending yourself by taking on more debt
than you can easily repay.
Get
your credit report and score NOW!
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