5 Simple Ways to Raise Your Credit Score

Your credit score is basically like fiscal clout – if your score is low, it won’t necessarily stand up when you are trying to take out a line of credit, rent a home or do anything involving borrowing money. If you have a business and you have bad credit, you won’t be able to take out a loan, which could put a damper on your business-owning dreams. Fortunately, there are a number of ways to build credit and maintain your credit score. If you are in a position where your credit is particularly bad, you will need to put in the effort to build your credit. It will be worth it when it comes to being able to do some of the most basic financial functions as an adult. Here are five simple ways to raise your credit score. Visit http://www.microcuts.tv/ for more tips.

  1. Make sure there are no mistakes on your credit report – you can use a service like Credit Sesame to examine your report. If there are any mistakes, you want to go in and fix them. You can fix them by calling up the business where the debt is held and rectifying the situation. If you do owe the money, you want to pay it back.
  2. Make sure to pay back all legitimate debts – if you do have debts and that is the reason why your score is low, you want to work with the entities that you owe money to and pay them back. In some cases, your debts may be too high. If that is the case, you want to create payment plans. The more that you chip away at your debts, the higher your score will be. If you don’t do anything, your score may actually get worse, especially if new debts are added to your report.
  3. Make sure to use credit wisely – if you don’t have credit and you are working to raise your credit score, you want to take out a low maximum credit card and start spending. Of course, you want to spend wisely, but you also want to spend diligently. When it comes down to it, you will most likely only get approved for a low maximum, but you won’t want anything too demanding to begin with.
  4. Make sure that you cancel any credit lines that you don’t need – if you have an open credit line that you are not contributing too, it may be hurting your score. By closing it, you may be able to raise your score by a few points. If you have a use for your credit line though, you may want to take advantage of it, because it could help boost your score.
  5. Make sure to become an authorized user of a credit card – if you have a parent or a spouse with a credit card, you may want to jump onto that credit card, because it could help you boost your score. All you have to do is ask the person and then you can add yourself to the account. In the end, you want to be responsible when it comes to your spending, because if you aren’t, you are not only hurting your own score.

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