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3 Easy and Effective Ways to Improve Your Credit Score

By Ruth Racey
Published: Friday, July 2nd, 2010

The credit score of a person determines his ability to take loans and most people are aware that this score is important. If you have been told that repairing your credit score is very hard then most likely you have spoken to someone who does not believe that small steps go a long way. Repairing your score isn’t hard if you know what to do. The following paragraphs will explain to you three ways through which you can repair your credit score. 

Verifying your Payment History by Getting a Credit Report

Since the year 2001 citizens of United States of America are allowed to get a yearly copy of their credit report. This yearly copy is absolutely free and people are encouraged to apply for this copy every year. The credit report is essentially a compilation of your payment history and credit history which is used to calculate your credit score. The first way to improve your score is to opt for this report every year and ensure that there are no errors. In case of any errors you will need to contact the credit reporting bureau and ensure that all the errors are corrected.

Pay Your Bills Without Any Delay 

Paying your bills on time is by far the best way to repair your credit score. If you have too many bills or if you feel that you forget to pay your bills on time then you should consider opting for bill consolidation. Bill consolidation not only reduces the number of bills you receive but it also helps you pay a lower interest rate. By transferring all your balances to one card with the lowest interest you will be saving a lot of money every year on interest. If you feel that you forget to pay bills even though you have adequate funds then you should consider setting up an automatic payment. Automatic payments can be set up through the bank’s branch or through an online bank account. 

Use Cash Instead Of Maxing Out Your Credit Cards 

Maxing out your credit cards is the easiest way to harm your credit score. Since all the payments you make using credit cards are recorded by the credit bureau, if you are trying to improve your score then you should try to use cash as far as possible. Using cash to make payments also prevents you from overspending and buying things you do not require.

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