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Improving Your Credit Score

Your credit score is a rating based on your finance history. Lenders use this score to determine if you are a good candidate for a loan, for calculating rates, and more. Generally, it is represented by a number between 300 (low) and 850 (high). There are some basic steps for improving your credit, and we’ve put together a list to show you just how easy it might be.

Watch Credit Balances. According to Bankrate, you should work to balance the amount of credit you have versus the amount you can get, especially when it comes to revolving credit (i.e. credit cards). Try not to owe more than 30% of your limit. Pay down accounts by seeing if your credit card company will accept multiple payments in one month.

No More Nuisances. Nuisance charges can make you appear risky to lenders because you have multiple balances on multiple accounts. Even if they’re small charges, try and use the same credit card or other account for most of your purchases, otherwise you might pollute your credit rating.

Old Debt Isn’t Always Bad. If you have a large loan that you’ve been paying for years, it can actually make you look better. As long as you haven’t missed any payments, this shows lenders that you have a good credit history and can handle long-term charges. Believe it or not, there is such a thing as good debt.

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