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How to Improve Your Credit Score

A bad credit score can cripple you in many areas of adult life and can make it very difficult to do even simple things like buy a car or rent an apartment. If you have a poor credit score, here are some of the ways you can improve it.

Pay Your Bills Online

One of the first things you need to do is pay your bills on time. If you have been lax up until this point, it could be one of the reasons why your credit score is so poor. It is such a simple thing, but it can make all the difference to your finances and your credit score overall.

If finances are the issue as opposed to timekeeping, sit down with your budget, and see if there is a way you can move your money around so you can pay the bills in a timelier manner. You should also consider contacting your utilities providers and see if they will move the payment date in any way. For example, moving it closer to your payday might mean that you have more liquid finances available to help you pay it immediately. If the issue is timekeeping, try setting an alarm or some other reminder so you know to pay the bills on a certain day.

Look at Other Factors

Your credit history is not the only thing that can affect your overall credit score. It is incredibly important that you learn about the 30% credit utilization ration rule as this may be having a bigger impact on your finances than you might think.

Having this ration above 30% for a sustained period of time is not the best. The lower you can make yours, the better for your credit rating overall. A lower rate can also help to qualify for better terms and interest rates if you need to apply for a loan.

Clear Your Debts

Finally, if you have any debt, you need to make sure that you have a concrete plan to repay it. Nearly everyone has some sort of debt, whether it is college fees, a mortgage or something else entirely. You need to make sure that you are actively working to pay it off.

The longer your debt sits there, the more interest it will accrue and that does not help you at all. Even if you cannot pay off most of the debt, you should get yourself into a position where it is clear that you are fighting to pay off your debt in a responsible manner. This will make you a far more attractive candidate to a loan company compared to someone who just lets their debts build up without addressing them.

Improving your credit score may seem like an uphill battle, but it is one that is incredibly necessary. If you know that your credit score is bad, you need to spend time improving it. This is something with no shortcuts, and no quick fixes. It will take time, but it is a project that is most definitely worth it.

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