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That statistic is much too low considering how important this number can be. Making any large life purchases would be rather difficult if your credit score isn’t doing well, don’t you think?
For those just learning, a credit score ranges from 300 to 900. The higher your score is, the better. According to TransUnion (one of the credit bureaus you can collect your score from), a 650 is considered very good.
But what about those of us in the 44% crew who know what our score is, and more importantly, know we need to improve it?
After paying off debt, you may need to rebuild your score from the ground up. Here are some ways to start to build and rebuild credit that don’t require very much work other than good financial management:
This means that you should only be utilizing an appropriate amount of your credit. Using over 30% of your limit will affect your credit score.
If you have regular bills going directly onto any line of credit or credit card, ensure you make those payments on time and, if possible, in full. One late payment or delinquency can make a difference in your overall score.
If this means contacting your bill collectors, banks or beyond to make sure that they know you are in good standing, go for it! Don’t be afraid to negotiate for reduced interest rates to make payments quicker. The worst they can say is no.
If you have any past bills or loans that had gone to collections, is it very important you settle these. Once settled, you can request that these are removed from the public records section by the credit bureau.
Overall, your credit score is only going to be as good as your financial health. If you always make your payments, stay within your limits and take care of any unsecured debts, you should be in wonderful standing. However, that doesn’t mean you don’t need to keep a watchful eye on your credit score.
It is recommended you check your score at least once a year to monitor for any fraudulent activity and ensure you are staying on top of your monetary game.
And don’t forget about our free workbook, Credit Comeback, to help you rebuild your credit. Download it now!