Pay Bills on Time
Consistently paying your bills on time is one of the most important factors in boosting your credit score. Set up automatic payments or reminders to avoid missed payments.
Keep Credit Card Balances Low
Aim to keep your credit card balances well below your credit limit. A low credit utilization rate (ideally under 30%) shows lenders that you manage credit responsibly.
– Pay Down Outstanding Debt
Paying off existing debts can positively impact your credit score. Focus on reducing high-interest debts first, which will lower your overall credit utilization and improve your score.
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Avoid Opening Too Many New Accounts
Each time you apply for new credit, a hard inquiry appears on your credit report, which can temporarily lower your score.
– Dispute Credit Report Errors
Regularly check your credit report for any inaccuracies or errors. If you find mistakes, such as accounts that aren’t yours, dispute them with the credit bureaus to remove negative marks.
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Become an Authorized User
Being added as an authorized user on a responsible family member's or friend’s credit card account can boost your score by benefiting from their positive credit history.
– Diversify Your Credit Mix
Having a variety of credit types, such as credit cards, loans, and mortgages, can improve your score. Lenders like to see that you can manage different forms of credit responsibly.
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Keep Old Accounts Open
The length of your credit history affects your score. Even if you no longer use certain credit cards, keeping the accounts open (if they have no fees) can help maintain a long credit history.