How to Fix Credit Score – Simple Ways to Fix Your Bad Credit

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If you have bad credit, it can make it harder to open new accounts and get loans. It also increases the interest rate that lenders will charge you, and it can prevent employers, landlords and insurers from extending you services. Fortunately, you can how to fix credit score by addressing mistakes and establishing good habits.

First, pull your credit report and review it for errors. You have 28 days to report any errors, and the credit reference agency will investigate and correct them.

Next, make sure to pay your bills on time – 35 percent of your credit score is determined by your payment history. Even missing a single payment can hurt your score, so setting up auto-payments is a great way to avoid late fees. If you have a high credit utilization ratio (the amount you owe versus your available credit), paying down your balances and raising your credit limits can help.

The length of your credit history (15%) is another important factor in your score, so try to keep the oldest accounts on your report. Bringing up to date any delinquent accounts, especially if they’re in collections, can also boost your score. If you’re having trouble managing your debt, consider seeking credit counseling to learn how to manage it responsibly and lower your monthly payments.

Credit cards are one of the biggest factors in your credit score, so if you’re carrying a large balance, paying it off as soon as possible can boost your score. You should also consider using a debt consolidation service to help you pay down debt and manage your finances.

Finally, consider signing up for a credit monitoring service that can notify you when your score changes or new activity appears on your credit report. This can help you stay on track with your plan to improve your credit and prevent you from reverting to old habits that could set you back.

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