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Steps to Boost Your Credit Score In the New Year

Every time you apply for a loan, your application is judged in part by your credit score. Lenders use your credit score, ranging from 300 to 850, to determine whether to grant credit, and at what rate.

Fortunately, you can take steps to boost your credit score. Shown in order of the percentage of impact they have on your credit score, these tips can maximize your score and influence
your credit worthiness.

  • 35%Pay your bills on time. Late or missed payment, foreclosures, and bankruptcies have greatest negative effect.
  • 30%Keep debt in check. Try to keep your account balances below 50% of your credit limit or instance, if your credit card has a limit of $2,000, keep the balance less than $1,000.
  • 15%—Keep accounts open. Closing old accounts—especially ones with a good payment history—shortens your credit history and lowers your score.
  • 10%—Avoid excessive inquiries. A lot of new credit requests—in a short period of time—can reduce your score.
  • 10%—Keep a healthy mix. The remaining 10% of your credit score depends on the types of credit you’re using. Make sure to have a healthy mix of credit.
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