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How to Improve Your Credit Score With Easy Steps

January 25, 2021 4:24 pm

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Are you looking to learn how to improve your credit score? You are not alone, many people have lost out on loan applications and favourable interest rates due to a damaged credit score. Some people have even tried to apply for consolidation loans from their bank in the hopes of getting out from under the credit burden they have become so accustomed to. The problem with these types of loans is that your credit score will suffer. Some people experience a poor rating due to errors on their report. However there are ways that you can improve your credit score.

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Credit scores are based largely on three different areas: payment history, total available credit and the types of credit accounts you have open. Utilise all available credit but do so sparingly. The key is to have a good payment history that will show up on your Experian statement, and over time this should improve your score. This is especially important if you’re looking to get a mortgage. For advice from a Gloucester Estate Agency, visit https://www.thomasandthomasproperty.co.uk/

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Even if your debt is minimal and you have on-time monthly payments, make sure you do not carry balances on your credit cards. Also, be aware that in order to keep your balances low, it may be prudent to close accounts that are rarely used, or that do not generate enough interest. This will lower your overall credit score, but remember that as long as you pay off your balances each month, you will be on track and should be able to maintain your new credit card balance for years to come.

 

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