Tip of the Day: Three Easy Ways to Improve Your Credit Score

A higher credit score can provide a good interest rate when you take out a mortgage or car loan. Usually, an average FICO score is not enough to get the best mortgage rates. Time.

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“You can never aim for the average score,” says Bruce McCleary, vice president of the National Fund for Credit Counseling.

Do you want to increase your rating as soon as possible? Take advantage of these recommendations.

1 Board. Know your limits

Your credit rate, which shows the percentage of available loan amount used, is one third of your rating. A high ratio can lower your rating, and a low one, on the contrary, can significantly increase it.

Consumers with the highest scores usually have a credit factor below 10%, but if you think this is not very realistic, aim for a factor of 30% or less.

2 Board. Set up automatic payment

Even a delay of one payment on 30 days can seriously hit your rating. If you plan to pay your bills online, it will help you avoid delays.

Bonus: Some banks lower your interest rate when you pay your loan bill online. For example, if you have an education loan.

3 Board. Check account statements

A survey conducted by Credit.com showed that 21% of consumers who checked their loan statements noticed errors in them, and 19% found bills or arrears that they did not know about.

Common mistake: After moving to a new place, people forget to pay the last month's utility bills or phone bill that are due at the previous home address.

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