Ways to Improve Your Credit Score

Ways to Improve Your Credit Score

There are several ways to improve your credit score. In order to raise your score, make sure you pay your balances in full each month. Inaccurate information can also harm your score so if in doubt, check your credit reports to ensure there are no errors. Try to avoid new credit card purchases or applying for too much credit in a short space of time. These raise your credit utilisation rate, which is calculated by dividing your balance by your credit limit. Higher utilisation rates mean lower scores, so it is best to keep your balances low.

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One way to boost your credit score is to make sure you pay your bills on time. A credit score is based on the mix of your existing accounts, so if you have a large amount of bad debt, making your monthly payments on time is essential. Consider setting up automatic payments and calendar reminders for the dates of your monthly payments. Another way to raise your credit score is to keep your balances low on all of your cards. For businesses wanting to credit check customers, consider Know your Customer. Know your Customer can streamline the process making it easier for all involved.

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The most obvious way to improve your credit score is to pay your bills on time. Your credit score will rise if you make your payments on time. It is also important to have several open accounts so your credit report will look good. By keeping your credit cards paid off regularly, your score will increase. As a result, you will be better able to borrow money. It is also a good idea to only credit cards for emergencies.