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On the average day most people aren't concerned about their credit score. Only that very special time when we are looking for a loan for a house or car does that magic little number come into importance. However little we actually need the score its extremely important to monitor and continue to raise. A good credit will get you the best interest rates and the least amount of fees and penalties. Here are three ways to improve your score.
1. Use no more than 2 credit scores
The more credit sources you have the less dependable you look. Think about it, why would a finacially sound person need more than two credit cards? You would if you didn't have your own money and lenders know this. Next time your at a baseball game and want that free tshirt for signing up for a credit card take a pass. Even credit cards that you sign up for and then cancel show up on your report and it frankly looks shady.
2. Keep a balance, but pay off every month
It's not enough just to have a credit card, but you need to use it and show that you can pay it off. It shows you are reliable and trust worthy. Even if you don't need to use it, use it for a couple times at the gas station and then pay it off. This builds credit and builds your reputation. Once you pay the minimum or fail to pay your credit card interest raises and it shows on your credit report. Do not pay off a credit card with another credit card or a loan. That is suicide.
3. Maintain a savings and checking account
Contrary to popular belief there is still a large population of people without a savings or checking account. This is by far the easiest way to build credit. Goto the nearest bank with $20 and open an account. You can just leave it there and build a little interest over time and it shows on your credit report without you having to do anything.
Theses are just three easy and common ways to improve your credit rating. Remember to check your credit report atleast once a year to see how you are doing and to look for any problems. Talk to an accountant for more information on things you can do. Thanks for reading!
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