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Dubber

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No way to raise credit score according to simulator
How can I improve my score? When I use the simulator, everything I do lowers my score. I've got an "F" in total accounts because I have only one account. However, when I simulate opening a new account (such as a home mortgage), my score drops.

I don't understand.

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The score you see in the credit score simulator is just an estimate of what your score could be if any of those events listed in the simulator happened and were reported to the credit bureau at that exact moment. It is true that if you apply for an account your credit score will take a hit due to the hard inquiry when the lender pulled your credit, but if you build and use credit responsibly, your credit score will begin to rise shortly after that. You state that you have only one account which you may be labeled as "thin file". If you had that account for a while, then adding another account may help get your credit score moving. Try your local bank or credit union and apply for a secured credit card.

Also, use the following tips below as a guide towards improving your score and holding on to good credit

  • Pay all accounts on time, 100% of the time
  • Keep your credit card utilization under 30%, but not constantly at 0% (1%-20% is key)
  • Actively use credit to build credit (don't let accounts go inactive)
  • Apply for new credit only in moderation to avoid excessive hard inquiries
  • Allow your current accounts to age (closing old accounts can lower your score)
  • Check your credit reports for accuracy and dispute errors (annualcreditreport.com is the site where you can check them for free once a year)

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