You can actually fix your credit score and be able to maintain a good credit. There are just some things you need to do and it will surely pay off. Get the tips below:
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Know your credit score – the more you know about what really goes into your credit score, the easier it’ll be for you to maintain a good one. Five key pieces of information are being used in order to calculate your credit score, such as your debt level, credit age, payment history, and even your recent credit. However, not everything financial affects your credit score. For instance, checking your account overdrafts, such as the utility payments will not help or even hurt your credit score.
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Start paying your bills on time – this tip actually falls for your entire bills, not only your loans and credit cards. While some bills do not get reported to the credit bureaus whenever you pay on time, they might still end up on your credit report once you fall behind. Keep in mind, even a small library find could surely wind up on your credit report once it’s left unpaid. So, as much as possible, you need to pay your bills on time.
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Keep the balances low – if you have higher credit card balance, you’ll surely have a bad credit score. Your credit card balance must only be within 30% of your credit limit in order to maintain a good credit score. That would be $300 on a credit card with a credit limit of $1,000, which charges more than 30% of the credit limit. It’s risky, even if you plan to pay off the balance whenever your billing statement arrives. Usually, the card issuer will report the balance once your statement closes, and once there’s a high balance, your credit score will be affected, even if you pay your balance fully.
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Debt management is important – credit card balances are not the only accounts influencing your credit score. Your loan balances and credit lines can have a great impact to your debt level. Having too much debt could surely cost credit score points and make it really difficult in order to afford your monthly fees. If you have lower debt, you’ll definitely maintain a good credit score.
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Limit your credit card applications – every time that you apply for a new credit, both a loan and a credit card, your score will surely take a small hit. The credit inquiries are about 10% only of your credit score. However, if you have a good and higher credit score, you surely lose score.
If you would like to give your credit score a nice fixation and maintain it, it would be best for you to take those tips mentioned above and live a life free of debt and other financial problems.