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5 Ways to Improve Your Credit Score Faster

The credit score contained in your credit report is the number that tells banks and insurance companies their creditworthiness. In other words this is the number that banks use to decide whether to lend money or not. The higher your score or credit score, the better your credibility with banks and other institutions. If you have a low credit score there are some steps you can take to increase or improve the index.

Why is it important to have a good credit score?



1. Good credit is important to buy a house with mortgage
2. To get a personal loan
3. To buy a car financed
4. Good credit is important to get low interest
5. Insurance companies look at your credit before securing your car
6. Some companies check their report and credit score before considering it for a job

Get Your Credit Report and Score

The credit report can be obtained free once a year using Experian, Equifax, TransUnion, and annualcreditreport.com. The report contains your credit history and a list of credit cards but does not include the credit score or index. To obtain this score it is necessary to pay a fee. In this company you can get your credit score, Free Credit Score! freecreditscore.com

The score is an index between 300 and 850 points. People with a low score, generally between 300 and 650 points, pay higher interest or are denied loans and other credit. If you do not want to pay high interest due to low credit scores, use these steps to help improve credit. These steps can help you improve your credit, but there is no automatic step to do so. Depending on your situation and the content of your credit history, it may take months or years to increase your score and improve your credit.

Top 5

1. Get credit reports. Review these reports and correct errors such as unapplied payments, delinquency and accounts that are not yours or that you do not recognize. These mistakes can cost you points in your credit score.



2. Page credit card accounts that have the maximum credit used. Almost always reducing your level of debt automatically raises the credit score. This has more effect when accounts with the maximum credit are deleted.

3. Do not close unused card accounts. Having clean accounts helps you increase your credit score, especially if they have a long and good track record.

4. Get a secured or secured credit card. Secured credit cards require collateral, but they can help you improve your credit. Some of these cards will approve credit without collateral after six months or a year of using it with responsibility.

5. Page your accounts on time. Late payment delinquency is one of the main factors that deteriorates the credit score. It is important to start paying bills on time to improve the score.

There are two additional factors that have bad credit score consequences, these are personal bankruptcy and foreclosure. When there are one or both of these in your credit history it is more difficult to improve your score. In order to improve your credit under these situations, you need to wait a while. (usually these two things remain in the credit history for 7 years)