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How To Improve Your Credit Score

Keep an eye on your score and correct errors on your credit report. The Federal Trade Commission has information on how you can get one free copy of your credit report from each of the three nationwide credit reporting companies, and how to dispute errors.

Pay your balances on time. This is the best way to maintain a good credit score over time.

Keep your credit utilization low. This refers to the ratio of your credit card balances to your total credit limit. Try to keep your utilization below 30% (by either putting less on your credit cards or applying to increase your credit limit on cards you already have). If you do need to use more than 30%, try paying down some of the balance before receiving your monthly credit card statement.

Consider keeping your oldest accounts open. The longer your credit history, the better.

Try to limit new credit inquiries. Opening new lines of credit (like an auto loan or credit card) will impact your score for 12-18 months.

Keep a low credit profile once you’ve applied for a mortgage. All lenders are required to check your credit again before they finalize your loan, so wait until after your loan is fully funded and the keys to your new home are in your hands before increasing your credit utilization, applying for new lines of credit, or closing accounts.




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