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How can I improve my credit score?

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A lot depends on your present credit score and payment history

A person with a good credit score will take a different approach as compared to a person with poor credit or no credit history. There are a few things that everyone follow in order to avoid degrading their score. They are as follows: 1. Absolutely mo late payments - Pay all your dues and bills in time. Your credit history counts for a major section (approx. 35%) of your credit score. Being a day or two late on a payment won't harm your credit score (making the payment 30 days late is likely to impact your score), but that can inflict late-fee and may increase your interest rate. 2. Manage your credit utilization - Aim to pay all your bills completely every month, but make sure to keep the outstanding amounts low. Credit utilization holds another major part of your credit score evaluation. It has approx. 30% share of your credit score, the amount of credit you carry compared, as a percentage, to the size of the credit line. You must keep your usage below 30% of the credit line, to protect your score. Of course, it's best to pay in full each month, to save on interest costs. 3. Keep older accounts open - The duration of positive payment history counts for about 15% of your score. The longer the time you maintain the accounts in good standing, the better your score will be. It shows that you have the ability to commit to a creditor for a long term and are responsible about clearing your dues in time. 4. Keep a mix of accounts - The variety of credit accounts sums for about 10% of your credit score. Maintaining different types of credits, such as credit cards, consumer loans, and secured debt (auto or home loan), inflicts a positive impact on your credit score. Having too much of one type of credit can have a negative impact. 5. Do not open a number of accounts all at once - The number of new credit accounts you have applied for recently adds upto about 10% of your credit score. Trying to obtain a large number of new credits in a very brief period of time shows that you could be a potential credit risk, as you are desperately trying for a huge new credit and could potentially run into problems. 6. Use your credit intelligently - Shopping around is the most intelligent way to get the best possible deal for a home, auto, or loan. Each time you enquire about these loans when applying for new credit, it is reported to the credit bureaus and will appear on your report. Too many such enquiries could have a negative impact on your credit score. 7. Review your credit report regularly - Avoid having your credit harmed by inaccurate information; review your credit report on a recurring basis. A person with a bad credit history, limited credit history, or no credit history must take some more steps to build a decent credit score. Such a person may need to apply for a secured credit card or find someone willing to co-sign..

A lot depends on your present credit score and payment history

A person with a good credit score will take a different approach as compared to a person with poor credit or no credit history. There are a few things that everyone follow in order to avoid degrading their score. They are as follows: 1. Absolutely mo late payments - Pay all your dues and bills in time. Your credit history counts for a major section (approx. 35%) of your credit score. Being a day or two late on a payment won't harm your credit score (making the payment 30 days late is likely to impact your score), but that can inflict late-fee and may increase your interest rate. 2. Manage your credit utilization - Aim to pay all your bills completely every month, but make sure to keep the outstanding amounts low. Credit utilization holds another major part of your credit score evaluation. It has approx. 30% share of your credit score, the amount of credit you carry compared, as a percentage, to the size of the credit line. You must keep your usage below 30% of the credit line, to protect your score. Of course, it's best to pay in full each month, to save on interest costs. 3. Keep older accounts open - The duration of positive payment history counts for about 15% of your score. The longer the time you maintain the accounts in good standing, the better your score will be. It shows that you have the ability to commit to a creditor for a long term and are responsible about clearing your dues in time. 4. Keep a mix of accounts - The variety of credit accounts sums for about 10% of your credit score. Maintaining different types of credits, such as credit cards, consumer loans, and secured debt (auto or home loan), inflicts a positive impact on your credit score. Having too much of one type of credit can have a negative impact. 5. Do not open a number of accounts all at once - The number of new credit accounts you have applied for recently adds upto about 10% of your credit score. Trying to obtain a large number of new credits in a very brief period of time shows that you could be a potential credit risk, as you are desperately trying for a huge new credit and could potentially run into problems. 6. Use your credit intelligently - Shopping around is the most intelligent way to get the best possible deal for a home, auto, or loan. Each time you enquire about these loans when applying for new credit, it is reported to the credit bureaus and will appear on your report. Too many such enquiries could have a negative impact on your credit score. 7. Review your credit report regularly - Avoid having your credit harmed by inaccurate information; review your credit report on a recurring basis..

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