Six Tips to Boost Your Credit Score
Lenders look to your credit score to predict future financial behavior. The higher your credit score, the easier it is to qualify for loans, rent an apartment, or even land a job or promotion.
1. Pay Your Bills on Time: If you’re struggling to make payments on time, ask your creditors about alternate payment arrangements and automatic bill pay.
2. Pay Down Larger Debts First: Always try to pay more than just the minimum balance on credit cards. Start by tackling credit card balances that are approaching their limits. Once a balance is paid off, move on to the next highest balance. And remember to never charge any single credit card or credit line to the maximum.
3. Avoid New Credit Applications: Only apply for new credit as needed and manage your existing credit responsibly.
4. Limit Your Time Shopping for Loans: When you start shopping around for a car or mortgage loan, try to keep your inquiries within a 45-day period.
5. Avoid Shifting Debt to Other Accounts: The best way to improve your score is by paying down your existing debt, not shifting it around.
6. Report Any Errors: Make sure to review your credit report at least once a year, especially before applying for a loan. If you notice any errors, contact the creditor and credit bureaus immediately
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