Important Ways To Increase Your Credit Score

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Important Ways To Increase Your Credit Score
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1. Make Multiple Payments
To keep a low percentage of credit card
utilization, consider making multiple payments
throughout the billing cycle. By doing so, you
can reduce your outstanding balance more
frequently, keeping it well below your credit
limit. This proactive approach helps maintain a
healthy credit utilization ratio, positively
impacting your credit score and overall financial
well-being.
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2. Settle all of your Balances Promptly
Paying your bills consistently on time and in
full will also be a significant factor in
enhancing your credit score. Your
creditworthiness will be negatively impacted by a
skipped payment, which can appear on your credit
file for up to seven years. In addition, if you
only make the minimum payments, interest will be
applied to the entire outstanding debt of the
subsequent billing period.
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3. Examine your Credit Report Thoroughly
This is another element that can raise your
credit score. A thorough review of your credit
report can benefit you in two ways first, it
will alert you to any errors that may have
occurred there second, it will reveal the
factors that are lowering your credit score. In
order to raise your increase credit score, you
can therefore perform the required actions.
Additionally, be sure to notify the credit
reporting agency if you find any inaccuracies in
your credit score.
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4. Keep a low percentage of Credit Card
Utilization
Maintaining a low percentage of credit card
utilization is crucial for financial health. It
involves keeping your outstanding credit card
balances significantly below your credit limit.
Aim to utilize only a small portion of your
available credit, ideally below 30. This
responsible usage demonstrates financial
prudence, boosts your credit score, and ensures
manageable debt levels, fostering financial
stability and flexibility.
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5. Keep Unused Credit Card Accounts Open
The majority of people mistakenly believe that
cancelling an old, inactive credit account will
raise their credit score, in reality, it will
have a totally opposite impact and will affect
your credit score. Closing a credit card shortens
your credit history which is not a good thing in
the eye of lenders and it also lowers your
available credit limit which in turn, increases
your credit utilization percentage.
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