How can I improve my credit score?

Whether you're planning to buy a new house or just thinking ahead, you may be concerned about the impact your credit score will have on your ease at acquiring a loan. The good news is that your credit score is not carved in stone. Although you can not wave a magic wand and have the number magically raise sky high, you can do something to boost your rating.

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If you are hoping to improve your credit score, the first thing to do is pay your bills on time. This sounds very basic, but it is important that you make prompt payments, especially if you are in the process of applying for a loan. Delayed payments can negatively affect your credit score. Do not overextend yourself and take credit every time it's offered. Accepting too many credit card offers can mean more bills than you can comfortably pay. Be sure that the bills you incur are ones that you can pay without stretching yourself beyond what is feasible.

Second, you want to make sure the information on your credit report is accurate. Mistakes can be made. Take advantage of your consumer right to receive your free annual credit report. Changing any existing mistakes can take months, but it is worth the effort. If you find incorrect information, you can dispute it, and unless proof can be delivered that the claim is substantiated, it must be removed from your credit report.

Lowering your credit card balances can also improve your credit score. Make payments when you can, and try to pay more than just the accruing interest. As the balances drop, this will have a positive influence on your credit report.

Still not sure how to improve your credit score? Non profit credit counseling services are always available and willing to assist you on your quest to improve your credit score. You can schedule an appointment to meet and discuss your financial situation, analyze your credit report, and develop a plan for cleaning up your credit history, thus improving your credit score.