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By Tammy Gravis

4 Things you can do to Increase your Credit Score

If you've faced a financial tragedy in the past that has landed you in credit rating trouble, you will want to fix this problem quickly. The key to obtaining loans at a lower interest rate and being capable of securing these with the greatest ease will rest in having a high credit rating. Studies indicate that a credit score of 700 and higher is considered to be an excellent rating. However, if yours isn't this high, you may need to consider some ways to increase it and knowing what these are can be helpful to you.

Pay on time

One of the best ways to enable you to have a higher credit rating is to pay your bills on time each month. There is a due date listed on your statements, and you will want to be certain your bill is paid by this day.

If you do intend to mail a payment, be sure to get it placed in the mail at least a week before your due date.

Keep balances low

Working to have the lowest possible balance on your credit cards is an ideal way for you to have a higher credit score. One way to do this is by avoiding charging a great deal and paying with cash when possible if you're trying to get a higher credit rating.

Additionally, consider paying off any purchases before the next billing cycle to avoid paying high-interest fees and ensuring these don't show up on your billing statements.

Avoid closing cards

You may feel that it's better to deactivate any credit cards you have that are just sitting around and not being unused. Unfortunately, this is simply not the case.

If you want to work towards a higher rating, you will need to leave these cards untouched and remain active to do so. However, it's also in your best interest to avoid having too many cards on hand and be sure to avoid applying for numerous credit cards because having too many credit cards can lower your rating.

Pay off debt

If you have a high balance on one of your credit cards, you may be tempted to transfer this balance to a card with a lower interest rate. This is not ideal if you want to improve your credit rating and could cause it drop.

It's much better for you to work to get the credit card fully paid off within a specific amount of time. Consider coming up with your debt repayment schedule that will enable you to get any outstanding debt paid off as quickly as possible. This may require you to work more hours or take on a part-time job, but will be worth it in the long run.

It's entirely possible to increase your credit rating when this is necessary. Making the right moves rather than the wrong ones is sure to be the way for you to reach this goal with ease. Take the initiative and begin working to increase your credit score today!

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