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STEP 9:
How To Improve Credit Score

It is very important to understand how to improve credit score as you begin to get out of debt. If you have been following our Debt Ditch Solution steps, you are working your way to a debt healthy life.

You may think that your credit report score will repair itself automatically, but that is not necessarily the case. As with all things, you need to be aware of how credit scores work to make sure they are working in your favor.

Here are our 10 tips to help with how to improve credit score:

How To Improve Credit Score

1. Get a Free Copy of Your Credit Report

Get a copy of your credit report to see where you are. Visit our page on how to get your free credit report.

2. Don't Close Your Accounts!

People are often advised to close their credit card accounts when the debt is paid so they won't begin to incur debt again. The truth is that you can improve credit score much more easily if you leave the account open and at a $0 or very low balance.

Why? Well part of your credit score is based on the length of your credit. If you close your accounts you have no credit history for lenders to evaluate. Granted, your more recent history may not be great, but as time goes by, and the bad debt and late payments are further and further behind you, your credit score will improve.

3. Use Just ONE Credit Card

If you are really looking at how to improve credit score, use just one low interest rate credit card, two at the most. That way you have a much better handle on how much you are spending and the other cards, left unused, will help improve credit score.

4. Pay Your Credit Card In Full Every Month

At the very least, keep your balance low and pay more than the minimum payment. That will accomplish two things: It will prevent you from getting into a high debt situation and low or $0 balances on your cards will begin raising credit score.

5. Use Cash As Much As Possible

Use cash or a debit card instead of charging to your credit card. Paying cash will ensure you are spending only what you can afford and will keep your debt from creeping up and spiralling out of control.

6. Pay Your Bills On Time

In your efforts at raising credit score, it is important to pay your bills on time. Mark the due dates of each of your bills on a calendar, or better yet, mark the date a few days ahead of the payment due date and refer to the calendar often. You will be much less likely to miss a payment.

7. Don't Open Any New Credit Card Accounts

Your credit score is based partly on the age of your credit accounts and the length of your credit history. If you are just getting out of debt, opening new accounts not only gives you more credit cards to use, {a possibly dangerous situation}, it can also lower your credit score.

8. See a Credit Counselor If Your Debt Load Is Very Heavy

This won't be raising credit score immediately, but it will certainly allow you to begin the process of getting out of debt and will show you how to improve credit score over time.

9. Don't Open Accounts Too Quickly

Opening several new accounts can actually damage your credit score especially if your credit history is fairly short or new. So, if you are new to credit and want to get off to a good start, get one low interest rate credit card, keep the balance owed on it very low and make your payments on time each month.

10. Keep Checking

Knowing how to improve your credit score is an important step in any get out of debt process. Just as important is periodic monitoring to see how you are doing. You have the right to request a free annual credit report once per year from each of the three credit bureaus. Check your score at least once a year to make sure you are on track and that the progress you are making is documented on your credit report.

If you follow these tips on how to improve your credit score and keep new debt to a minimum, your credit score is sure to improve over time.

Now that you know how to improve credit score, read about one of the most important keys to financial planning,... saving and investing.












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To achieve financial freedom, ideas such as: listening to good advice, learning how to make a budget, understanding credit repair possibilities, avoiding the scams, and generally becoming more knowledgeable of the credit card business, can all play a role in eliminating credit card and other debt. There is A smarter way to manage your money.





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