5 simple & effective ways to improve your credit score

A good credit score can unlock very important doors that make your life easy and save you thousands of dollars over time.

It not only makes it easier to get loans and credit cards, but it is vital if you want a low-interest rate on your loans. But people often think it is very difficult to get and maintain a good credit score and assume it is a time-consuming process.

Check your credit report often

Look for any inaccuracies in the credit report, and if you find any, dispute them. If you spot these mistakes, you can make sure they are changed and undo any damage to your credit score.

Pay all your bills on time

The most important factor affecting your credit score is your payment history; it makes up 35% of your credit score.

Don’t overuse your credit cards

Maxing out your credit cards significantly hurts your credit score by increasing your credit utilization ratio.

Don’t cancel credit cards when you stop using them

A fairly important factor in calculating your credit score is the length of your credit accounts. So the longer you have had your credit cards for the better.

Don’t apply for multiple credit cards at the same time

When a company is processing your credit card application, they check your credit score, which is known as a hard inquiry. This typically lowers your score temporarily.

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