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Easy Tips to Improve Your Credit Score

January 28, 2014

Have you had some financial issues in the past but are now hoping to buy a home in the not so distant future?  Now is the time to creditscorepmstart thinking about improving your credit score and there are some simple tips to get started.  The first tip is to get a credit card.  While this may sound counter-productive the idea is to not put a huge amount on the card but using it occasionally and paying it off regularly can really help boost your score.  While we are on the subject of credit cards, it is also important to pay down revolving accounts such as credit cards.  Lenders especially like to see a large gap between the amount of credit available and the amount being used.  With that being said, most lenders would also discourage you from carrying a large balance on your credit cards even if you pay them off every month.  This is due to the fact that the credit bureaus calculate your scores based on your last months balance.

A great way to keep your credit score rising is from here on out make all of your payments on time.  This is even more effective if you can pay off all balances in full each month.  If you can’t pay the entire balance off each month make sure you are at least paying the minimum balances on time.

This may not necessarily effect or hurt your credit score per se but could sway a lender and that is hinting at risk.  What this means is that all of the sudden you are paying bills later than usual or not paying as much towards a particular bill.  Another hint at risk could be taking out cash advances or even using your cards at places such as pawn shops or a divorce lawyer.  All of these things can add up to a lender not wanting to take the risk on your loan.

The bottom line is that a credit score cannot be fixed in a day but if you maintain a steady and secure credit balance and pay your bills on time and in full you will be surprised at how much your score will improve over time.  If you have any questions please feel free to contact me! I look forward to hearing from you!

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