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Increase Your Credit Score with These 10 Simple Steps

It’s no secret that having good credit is important. A high credit score means you’re a low-risk borrower, which can result in lower interest rates on car loans, mortgages, and other types of debt.

But don’t worry – there are steps you can take to improve your credit score.

Repair Your Credit & Increase Your Credit Score with These 10 Simple Steps

Know your credit score and credit history.

Get a free credit report from annualcreditreport.com and check your credit score. Review your credit history carefully to identify any errors or inaccuracies.

Once you know where you stand financially, you can begin to make a plan to improve your credit score. Part of that plan should be creating a budget and sticking to it.

Create a budget and stick to it.

One of the biggest factors in your credit score is your payment history. Creditors want to see that you’re capable of paying your bills on time, every time.

Pay your bills on time, every time.

Use credit wisely.

It’s important to use credit wisely, which means using it only when needed and not maxing out credit cards. Using credit responsibly establishes you as a low-risk borrower, which is attractive to creditors.

Keep balances low on credit cards

Your credit utilization, which is the amount of credit you’re using compared to the amount of credit you have available, makes up 30% of your credit score.

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