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Three Tips For Raising Credit Score
Credit score is always needed when you are thinking of planning to take a loan, car loan, looking for mortgage, refinance your existing home or buying an investment property. There are many ways to improve your credit score, but here are three tips that can help you raise your credit score.
First and the foremost is to make timely payments. Payment history is one of the most important factors that impact your credit score. To improve your credit score, it is crucial to make timely payments on all your debts and bills, including credit cards, loans, utilities, and rent. Late payments can stay on your credit report for up to seven years and can significantly hurt your credit score.
Secondly, keep your credit utilization low. Credit utilization is the ratio of your credit card balances to your credit limits. To improve your credit score, it is recommended to keep your credit utilization below 30%. You can achieve this by paying down your credit card balances or requesting a credit limit increase.
Lastly, its very important to monitor your credit report. You must regularly check your credit report to ensure there are no errors or inaccuracies that could be hurting your credit score. You are entitled to a free credit report from each of the three major credit bureaus (Equifax, Experian, and TransUnion) every year. Review your credit report thoroughly and dispute any errors or inaccuracies that you find.
Keeping these tips in mind, will always keep you on the guard and it will be easy to secure a loan in future.