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5 Awesome Ways to Help You Improve your Credit Score

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August 12, 2017 in Technology

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Americans average credit score varies by age. 25 to 35 year old citizens are considered to have the lowest scores on average. This is because most of are still paying off their student loans and are just getting established.

The credit scores climb steadily with age as people start to focus on saving rather than spending. Recent research reveals 55+ crowd records the highest average score of 700. However, there are steps you can always take to help you raise your credit scores despite your age. One of the first steps in knowing your score. Here are five ways that will ensure you improve your credit score.

1. Ensure you Get Rid of Errors

5% of American citizens are said to have errors on their credit reports from at least one of the three major credit reporting bureaus. At times, the errors are as minor as your address, however, in other instances, they can affect your credit score.

In case you are interested in boosting your credit score fast, then you will have to pull all the three of your individual credit reports. Check all the accounts go through the credit limits, payment records and current balances carefully. In case you notice any issue, take appropriate steps to ensure the errors are quickly corrected.

2. Request for Goodwill Adjustments

Missing even one payment can reduce your credit score. The missed payments also remain on the credit report for as long as seven good years. At times, it is possible to get your creditor to remove that missed payment from your record. The process is referred to as goodwill adjustment. You will need to write a goodwill letter to the creditors explaining what caused the late payment. Thereafter you can request the creditor to remove the negative records from your credit report thereby improving credit score fast.

3.
Get a Higher Limit

Credit utilization is one of the major factors of the credit score. It is responsible for measuring the amount of debt you carry in relation to your overall credit limits. For example, when you have $1000 credit limit on your Chase card and you have a balance of $100 balance, your credit utilization 10%. The lower the credit utilization, the better the FICO score.

In case you have credit card balances that you are slowly paying down, it is possible to increase your credit score by applying a higher credit limit.

4. Balances Pay Down

Paying down your balances is considered to be one of the smartest ways you can use to pay down your balances. Just like seeking a credit increase, reducing balance on the credit card will decrease credit utilization. This method has the benefits of reducing your debt.

5. Auto- Schedule our Bill

Credit reporting firms are never away of how you will pay your bills. However, they are always concerned about late payments. Auto schedule is one great method you can use to avoid late payments. You need to remember that most of the car users will allow you to set a due date of the payment. It is advisable the due date is set a few days after the pay day. This will ensure you never miss a payment.

Just like in losing weight, you will have some crash diet tricks that will help in boosting your score. However, you will have to practise the healthy habits for a longer term. In credit score, you will have to keep the credit card balances low, paying all your debts in time and ensuring that all the longstanding accounts stay on record. This will enable you to build a higher credit level score.

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