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Improve Credit Score

Edited by Maria Sharon Ubando, Lynn

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Credit score plays a very important part in a person's life. Your credit card or loan approval depends on your credit score, so try and make it a point to keep your score high.

If you have applied for a loan or mortgage and it got declined, you must not wonder why. Maybe you have missed some payments in the past and got tagged as a delinquent payer. When you have a bad credit score, it takes a while before you can fix it. In fact, there is no shortcut to doing it, so if a company offers you a quick fix, you shouldn't grab it without considering the consequences, because it may backfire. Instead of getting it fixed, you might only be causing yourself more hassle.

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Improving your credit score is actually easier than it seems. It just takes a little more patience, and you'll soon reap what you sow. Read over and learn some ways on how you can improve your credit score.

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Ways to Improve Your Credit Score

1
Always pay your bills on time
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This is the easiest way that you can improve your credit score. Late payments cause a negative effect to your score, especially when this is a recurring situation. Whether it is a small or big amount, make it a point to make on-time payments. Remember that regardless of how much you owe, non-payments will still be reported against your score.

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Here's a tip:

So you do not forget credit due dates, you may want to subscribe to a payment reminder feature, through which you will receive notifications when your due date is near.
This may not be the best way, but you may also want to try it. You can choose to enroll in an online banking service that will debit what you owe directly from your bank account.

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Avoid multiple credit cards
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While it is good to have credit cards that you can use when you run out of cash, it will not be good for your credit score to carry high balances, especially when you cannot maintain on-time payments. Avoid opening new cards if you really do not need them. Having too many will poorly affect your credit.
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2
Check your score often
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Live by the saying "a pound of prevention is worth an ounce of cure". Make it a habit to check your credit report on a regular basis. This way, you will know if there are discrepancies that could be causing your low credit score. You might be surprised to know that a loan has been taken out in your name. Statistics say that about 13.1 people's identities are stolen each minute, and you might be surprised to find out that you could be one of them. You can prevent further damage by catching problems early through regular credit report reviews.

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3
Keep credits cards/accounts opened
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Do not be tempted to close your account after finally paying off completely. Keeping it open will do good to your score. Lenders would love to see you having a long and well-maintained account; that can be good news for you.
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