Your credit score is use by lenders to help them decide how likely it is they’ll be repaid on time if they grant you a credit card or loan. Credit score is an important measurement of your financial health. The higher your scores, the more likely you are to qualify for loans and credit cards at the most favorable terms, which will save you money.


Described below are the steps to improve your credit scores.

  • Review your credit reports. Pull a copy of your credit report from each of the three major national credit bureaus (EquifaxExperian, and TransUnion). FICO credit scores are used by more than 90% of the top lenders.
  • Pay your bills on time.
  • Pay off debt and keep balances low on credit cards and other revolving credit. Aim for 30% credit utilization or less. If you have delinquent accounts, charge-offs, or collection accounts, take action to resolve them.
  • Apply for and and open new credit accounts only as needed.
  • Do not close unused credit cards. Keep the old accounts open. The older your average credit age, the more favorably you appeal to lenders.
  • Do not apply for too many new credit which resulted in multiple inquiries. Applying for credit creates a hard inquiry on your credit report which impact your credit score if too many hard inquiries.
  • Consider consolidating your debts.
  • Use credit monitoring services to track how your credit score changes over time. These services, many of which are free, monitor for changes in your credit report, such as a paid-off account or a new account that you’ve opened.

In conclusion, improving your credit score is a good goal to have if you are planning to apply for a loan or qualify for the best reward credit cards

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