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How To Improve Your Credit Score

1. Check your free credit report

You can get a free credit report every 4 months for free. You see, the three credit reporting agencies (Equifax, TransUnion and Experian) must provide a free report each year if you request it. If you simply make your request to each company every 4 months, you’ll be up to date. You can write to these companies and send you reports for free. If you place orders online, you may have to provide a credit card number even though you will not pay for it.

Once the report, study it carefully. Correct mistakes that are hurting your score.

2. Pay bills

In addition to keeping the lights on and let the water run, you must pay your bills (all of them) on time as it raises your credit score. Lenders fear (rightly) that if the scale of debt, is squama others.

Paying on time also helps to avoid paying fines and surcharges. It is also a good Karma.

3. Get more credit cards

Of course you have to be smart about it. You should not use the cards … just get them. And make sure you pay your balance in full each month. This adds points to your credit score.

4. Limits

Do not spend more than 30% of the available credit limit. If you really want to take this idea, runs less than 10% of your available credit. You earn extra points.

5. Use a secured credit card

If you can not obtain traditional credit cards or if you spend more money than you should, get a credit card secured. These cards are pre-loaded. That means you put money in the account and then use the secured credit card to draw the account down. Using a card like this will help you rebuild your credit and avoid overspending. A double whammy. Nice.

Part of your credit score is calculated by the amount of credit you are using compared to the total available credit. For example, you have $ 2,000 in credit card debt. If you have a total available credit of $ 10,000, which is only using 20% ​​of your available credit. Creditors like this. But if you have $ 2000 in your cards and your total available credit is only $ 2000, you are using 100% of your available credit. Creditors do not like at all.

It is therefore important to have as much available credit as possible. Do not close old accounts. Leave open, use a little (no more than 30%) and make sure you pay your bill in full each month.