Ways to Improve Your Credit Score

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Ways to Improve Your Credit Score
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Pay Your Debits on Time
This may seem obvious. 35 of your credit score
is determined by your ability to pay your bills
on time it helps in fast credit repair. Even a
payment with a few days late can significantly
affect your credit score. If you have lost one
or more payments, that's fine. When you
constantly pay your bills or payments, your score
should start to improve. But it may take a few
months to see the results.
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Expand Your Credit Limit
By raising your credit limit you are decreasing
your credit utilization rate. That is, as long as
you dont adjust youre spending habits
accordingly. Then you would just end up at the
same credit utilization rate and owing more. To
put this into perspective, if you have maxed out
a 2,000 credit card, and you call the creditor
and get approved for a credit limit increase to
4,000, you instantly cut your credit utilization
rate in half. You should see results in an
improved FICO score within a month or two with
this method.
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Dispute Discrepancies and Errors
You should review everything in your credit file,
with a particular focus on accounts with late
payments or unpaid bills. If you find
inaccurate information, you can report
inaccuracies online through Experian, TransUnion
and Equifax. In addition, you can contact a
credit repair company like Lexington Law to help
repair your credit. The reporting agency will
open an investigation if it finds that your
claims are justified and the problem must be
resolved within one or two months. Under the
law, you are entitled to a free credit report
every year. You can request your free annual
credit report from the major rating agencies
at AnnualCreditReport.com.
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Strategically Open Credit Accounts
Opening too many accounts in a short time can
have a negative impact on your credit
score.   When you apply for a loan, your credit
report is subject to serious investigation that
will reduce your credit score by some points.
Therefore, the more you apply for credit, the
more points you earn in your credit score.   If
you have one or two accounts with a low credit
limit and have not opened any new accounts in the
last six months, opening a new credit card
account can improve your score.
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Pay Your Bills Twice a Month
Most creditors only report their balances to
credit bureaus once a month. Even if you pay your
card every month, if you use large balances, it
may seem like excessive use of your credit. For
example, if you use a reward card to pay for
everything and maximize it or almost every month.
Even if you pay your bill in full, when the
credit reporting agency sends your monthly
report, it seems that you use most of your
credit, which reduces your score.
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Become an Authorized User
To become an authorized user, you must have a
person who manages your money very well and is
ready to add it to your account and issue a card
in your name. Obviously, this person will have
to worry about you and trust you to add it to
your credit account. You should not intend to use
this credit card and you should ask this favor of
someone just to establish or improve your credit
score. Once you are an authorized user, the
account appears on your credit report, as well as
the credit usage rate and all on-time payments
associated with the account. As a result, your
credit score will increase.
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Conclusion
It is important to understand that the faster you
will see an increase in your credit score, it may
take a few months. You can easily ruin your
credit score in less than a year. It will take
even longer to repair the damage caused by the
irresponsible use of credit. It is much easier
and less stressful to maintain a good credit
rating than to repair it. The best advice is not
to spend more than you can afford and pay all
your bills on time. If you lose your job and
cannot pay, many creditors will work with
you until you find a new job.
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