Improve Your Credit Score with these Simple Steps

Good credit is crucial. Whether you want to buy a car, a new home, start a business, or just get the best interest rates on your credit cards, having good credit is a must. Without it, you may face high borrowing costs and interest rates, or even be unable to do these things. A poor credit rating can also affect your job prospects, as many employers check candidates’ credit before hiring, and a poor credit score may indicate irresponsibility or a theft risk.

Four Ways of Building Credit

Here are some ways to improve your credit score:

• Build a credit history by taking out and using at least one or two credit cards. This shows that you are responsible with credit and can repay debt in a timely manner. Although paying in cash may seem like a good idea, a lack of credit history can prevent you from getting a loan when you need it.
• Avoid taking on too much debt, as this can also make you appear risky.
• Pay off your credit card balances on time and keep them low if you must carry a balance. Late payments, even by a day, can result in penalties and negatively affect your credit score.
• Keep your oldest credit card open, even if you only use it for minor purchases. The credit rating agencies consider both your debt and how long you have had your accounts, and having a long-term relationship with a lender is a major factor in your credit score.

• January 30, 2018
• Miscellaneous
• Alpine Bank

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