6-Steps Guide To Build a Solid Credit Score
Credit Score is a number between 300-850 that depicts a consumer's credit worthiness. It is based on number of accounts, total levels of debit and repayment history and other factors.
35% Payment History
30% amount Owed
15% Length of Credit History
10% Credit Mix
10% New Credit
1. Build Your Credit File
Get a secured card and loan. Use a co-signer and become an authorized user. Get credit for bills you pay and update about your score.
2. Maintain Good Payment Habits
Pay your bills on time. Remember your credit limits. Maintain credit history. Check your credit reports for errors.
3. Review Reports Periodically
It is necessary to check the reports timely to check for mistakes or negative information as well indentity theft, which is normal now a days.
4. Don't Use More Than 30% of Your Credit
Anything higher than 30% can decrease your credit score . The lower you can get your balance relative to your limit, the better for your score.
5. Minimize New Credit Requests
Hard credit requests for such things as credit cards, loans of credit will often lower score.
6. Don't Close accounts not in use
Closing the account might damage your score. For each account you decide to close, points will be lost.
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