1. Be punctual
Pay all your bills on time each month. Late payments, collections and bankruptcies can have a significant negative effect on your credit health. If you need some help with this, consider trying out some of these strategies.
2. Check your reports
Check your credit report regularly and take the necessary steps to remove inaccuracies. Don't let your credit health suffer due to inaccurate information. If you find an inaccuracy on your credit report, contact the creditor associated with the account or the credit reporting agencies to correct it.
3. Manage your debts
It's generally recommended to keep your credit card account balances below 30 percent of your available credit limits. For instance, if you have a credit card with a $1,000 limit, you should try to keep the balance owed below $350.
4. Give yourself time
Time is one of the most significant factors that can build healthy credit. Establish a long history of paying your bills on time and using credit responsibly. You may also want to keep the oldest account on your credit report open in order to lengthen your period of active credit use.
5. Avoid excessive inquiries
A large number of inquiries incurred over a short period of time may be interpreted as a sign that you are opening numerous credit accounts due to financial difficulties or overextending yourself by taking on more debt than you can easily repay. Apply for new credit in moderation and thoroughly research your options before you apply.
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