5 Quick Tips to Improve Your Credit Score 

Your credit score determines how much your car insurance could be, what your car loan rate could be, and whether you get an apartment or even a job. Here are a few tips to make sure your credit score is on the rise and heading into the good-to-excellent range. 

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1) Pay all of your bills on time

Late payments, collections and bankruptcies have the greatest negative effect on your credit score.

2) Check your credit report regularly and take the necessary steps to remove inaccuracies

You can check your credit report for free at www.annualcreditreport.com. If you happen to find an inaccuracy on your credit report, contact the creditor associated with the account or the credit reporting agencies to correct it immediately.

3) Watch your debt

Keep your account balances below 50% of your available credit. For instance, if you have a credit card with a $5,000 limit, you should try to keep the balance owed below $2,500.

4) Give yourself time

Establish a long history of paying your bills on time and using credit responsibly. You may also want to keep the oldest account on your credit report open to lengthen your period of active credit.

5) Avoid excessive inquiries

A large number of inquiries occurring over a short period of time may be interpreted as a sign that you are opening numerous credit accounts due to financial difficulties or overextending yourself by taking on more debt than you can easily repay.

The Takeaway

Staying on top of your bills and debt can keep you from wasting your money because of higher loan rates.

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