Improve Your Credit Score
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Improve Your Credit Score- Understand how a credit score works
To first improve your credit score you need to understand the aspects that make up your credit score.
- Credit History Length – The longer you have credit the higher your score, unless you have negative credit history.
- New Credit Accounts – Any new accounts are reviewed, try not to have too many accounts, just increase limits on current accounts if possible.
- Amount Owed – This not includes how much you owe, but the amount of credit you have available. That is why it is important to get credit cards down under 20% of their maximum limit.
- Payment History – The types of payments play a role (IE mortgages, credit cards, etc.) Also if you have missing payments, this will have a very negative effect on your credit score.
Ways to Improve Your Credit
- The first thing you need is a copy of your credit report. Do not be afraid to get it. You can obtain a copy of your credit report here.
- After you get your credit report make sure to correct any mistakes or errors.
- Pay your bills in time
- Do not get credit cards just to have credit cards.
- Pay off credit card debt instead of shifting it to other credit cards.
- If your credit is so-so, open up a few credit accounts and pay them on time and keep their balances low.
- Do not get alot of new credit accounts in a short period of time.