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What To Do After You Establish Good Credit

Once you’ve gotten your credit established, you can’t just set it and forget it. If you’re ready to amp up your score by 100 points or more, here’s what you need to do next.

1. Wipe out your credit card balances

The fastest way to send your score shooting up is to pay off your credit card debt. Carrying too much debt drags down your credit utilization, which means how much of your total credit line you’re using. The lower your balances are, the better where your score is concerned.

2. Ask for more credit

Aside from paying down your credit you can also improve your credit utilization by asking for a limit increase. This is tricky, however, since your credit card company might want to pull your credit report before they approve you. Every time a lender checks your credit it knocks a point or two off your score so you want to avoid a new inquiry if you can.

3. Keep your accounts open

Once you pay off your cards you might think of just closing them for good but that could be a mistake. The older your account history is, the better your score should be so you may want to consider keeping old accounts open and active. Use your card every once in awhile and then pay it off to keep the account active.

4. Slow down on new credit applications

Every time you apply for a new card, a new inquiry hits your credit report and your score drops by a few points. To keep your credit score from slipping too much, scale back on how often you open new accounts.

Achieving good credit is great however it is only the first step. Living with poor credit over time becomes a lifestyle. Your next goal will be achieving GREAT CREDIT. With great credit everything is cheaper.


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