8 best tips to build excellent credit scores

You’ve probably heard that you need excellent credit scores to qualify  for the best terms on credit accounts like mortgages, personal loans and  credit cards.

Credit scores typically factor in your payment history, amount of  outstanding debt, types of credit accounts, age of accounts and recent  credit inquiries.

Understand how credit scores work.

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Use credit accounts to build credit.

If your credit reports have too little or no data, they can be too  “thin” to generate scores. You must have credit accounts and use them  responsibly.

Make payments on time.

Since your payment history is the most significant factor in your credit  scores, paying your bills on time every month is critical.

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If you pay off a revolving credit account, such as a credit card or line  of credit, keeping it open is better for your credit than closing it.

Don’t close credit accounts.


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