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Taking care of your credit score is very important. If you have a bad credit score, you’ll need to do everything you can in order to repair it. However, you should know that this is a process that takes a lot of time and patience. Taking active steps to raise your credit is always recommended so we have a couple of tips that should help you manage your credit score.
Don’t close old credit cards
You might want to close old cards that you no longer use, but it is recommended that you keep them open. By doing this, you will improve the length of your credit history, which is something that can benefit your credit score. The older your card is, the more critical it is to keep it open.
Checking your credit scores
Checking your score will definitely help you make smarter financial decisions. There are numerous websites that will offer you your credit score for free. Additionally, many credit card providers can give you free monthly credit reports. You can also use Equifax, Experian and TransUnion, the three credit bureaus, to get a complete credit report for free each year.
Checking your credit score will allow you to notice errors and mistakes. For example, there might be missed payments that you made in fact. It is also an excellent method to see if you are the victim of fraud or identity theft.
Payment reminders
It might be hard to keep track of all your payments, but making your credit payments on time is essential, and it can be great for your credit score. In order to make sure that you pay everything on time you should have payment reminders.
There are certain banks that offer payment reminders, which can be either text messages or emails. There is also the automatic payments option, which will have money automatically debited from your bank account.
Credit use
Opening accounts in order to improve your credit mix isn’t recommended. It is not likely that your credit score will be improved. You should make sure that you open new credit accounts only when it is really necessary. There are many websites which can help you with instant credit if you need it.
You should also remember that closing an account won’t make it disappear, and that account will still appear on your credit report. In certain cases it might even be considered a score, so you should be careful.
Additionally, you should be careful when it comes to your credit cards. Installment loans and credit cards can be good for your credit scores, but only if you are responsible enough. As long as you manage your credit cards properly, you will have an advantage compared to persons who don’t have credit cards.
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This content is sponsored by Costea Lestoc.
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