Tips for Making Your Credit Score Higher

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Clear Up Credit Report Errors

Never assume that the information listed on your credit report is accurate. Granted, the majority of entries will correctly reflect your credit history. However, mistakes can occur and wrong information such as unknown accounts or higher account balances can lower your credit rating and make it difficult for you to get financing.

Ordering credit reports takes less than five minutes, and with free resources such as AnnualCreditReport.com, you're entitled to one free report a year. Credit reports are viewable online, and they include directions on how to dispute errors.

Get a Handle on Your Balances

Some consumers only pull out the plastic for emergencies, whereas others use their credit cards for monthly expenses and then pay off the balance at the end of the month. Both methods are key to avoiding huge credit card balances. The problem lies when you use credit cards regularly and fail to pay down the charges. This results in carrying a balance, and you can expect a drop in your credit score if your balance exceeds 30 percent of your credit limit.

Always Pay on Time

Managing your debts wisely involves sending your payments on or before the due date. Creditors do not tolerate late payments. Regardless of whether you have a history of paying on time, one late payment can result in late charges, and depending on your credit card company, an increase in your interest rate. Bring up your low credit score by paying all your bills on time each month. Pay early to avoid an accidental late payment.

Unknowingly to some consumers, applying for a new credit card or loan takes points off your credit rating, and too many inquiries can result in a bad credit rating. This is vital information because department and retails stores constantly invite patrons to apply for in-store credit in order to save on their purchase. What's more, credit card companies regularly tempt consumers with pre-approved offers. Reject these invitations and only apply for credit when necessary to help improve your credit score.

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