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Tips for Improving Credit Score

1) Check your credit report to see if the information is correct. Correct errors if there is any.

2) Start building your credit history. Get a credit account (authorized user of parents' credit card, secured credit card, bank card)

3) Pay your bills consistently and on time. If you have credit account such as installment loans, credit cards, consumer loans, and other loans that your creditors report, never be late for those payments. You pay for penalty fee and penalty interest but also pay for lower credit score.

4) Use the card wisely but keep the balance low. Account activity is important, meaning you need to use credit but you need to keep reasonable amounts of unused credit. Approaching the credit limit of credit card lowers your credit score severely.

5) Don't open credit card accounts that you don't need. You need to have some credit to build your credit history. Too many credit cards will hurt your credit score.

6) Apply for credit sparingly to limit credit inquiries. When you apply for credits, potential creditors will check your credit report, which are hard inquiries and lower your credit. Forget about store cards to get 15% discount. But also watch out for sweepstakes, cellphone, utility companies, landlords who may check your credit report.

7) Start to pay off debt rather than moving it around. If you have a credit card with balance, start to pay off your debt instead of move balances to other credit cards that may have lower interest rate.

8) Watch out for your student loan. Student loan will be considered more in credit score in the future. Defaulting the student loan, meaning that you did not make the payments is a problem as of now but it will be considered fore in the future.

9) Shop for a loan within a focused period of time.

10) Don't close old credit cards: old accounts can help your score.