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Consumers don’t think much about their credit score until a major purchase is upon them. Buying a car or house requires considerable debt, and a high credit score can make each purchase an affordable venture. Take a close look at how you can fix your credit score when you discover that it’s lower than 600 or 700 points. Your quality of life can depend on this rating.

Access Your Credit Report

According to the Federal Trade Commission, you can access your credit report once a year or when a company declines your business. This credit report is one of the most important documents in your financial life. Download a copy and read it. Highlight any issues that seriously affect your credit score. Late payments, not enough credit and high credit-card balances negatively impact your credit. Your creditors access this document all the time so it’s a smart idea to read it over too. Older items, such as bankruptcies from a decade ago, may be removed from the record so that your reputation looks better than ever.

Amend Any Mistakes

According to Experian, you have a right to file a dispute if the report has false information about you. Identity theft and other fraudulent actions may be on your report without your knowledge. Frequent verification of the report will only minimize these occurrences. When you file a dispute, send copies of your supporting documents so that the credit agencies have proof of your claim. If the situation is false, the reporting agencies can remove the item with the help of the original creditor. Every mistake that remains on a report will only hurt your chances of borrowing money in the future.

Apply For One Credit Card

You may only have a debit card as a form of currency, but it’s important to branch out. Regardless of any bankruptcies in the past, you need to apply for one credit card. It can be secured or unsecured, depending on your current credit score. Use the card responsibly so that your score can reflect those actions. When you don’t use credit at all, your score has no chance of moving higher or lower. Set a budget for the household, and don’t use the card for more than the monthly income. Responsible spending will be rewarded with a stellar score.

Consider a Second Card

A major part of your credit score is based on the balance-to-limit ratio. Essentially, you should have a large gap between a credit-card balance and maximum limit. Improve your score by adding a second credit card to your wallet. You might charge small items, such as groceries, on this card and pay it off. Over time, the balance-to-limit ratio on both of your credit cards will improve the overall score. Simply be careful about spending habits so that debt isn’t a side effect of the credit-repair process. This is advice that even a legitimate company that repairs your credit for you would recommend as a top priority.

Be Aware of “Good” Debt

When consumers deal with a low credit score, they may be wary about taking on any debt. However, there are debts that are considered “good” by the credit reporting agencies. Mortgages, student loans and other associated costs are good debts because you’re actively improving your investments or mind. Examples of bad debts include excessive credit-card balances and personal loans. Keep your budget in mind as you take on good debt while trying to pay off the bad debt in record time.

Pay Bills On Time

A simple way to repair your credit score is attention to monthly bills. With every payment of the electrical bill, you’re slightly improving the score. On-time bill payments also highlight your level of responsibility as your history improves too. Everyone has a late bill at some point, but try to keep up with the payments. Set up automatic drafts from your checking account so that you don’t have to think about paying the bills by hand.

Be careful about scams that seem to revolve in and out of popularity through online or phone-call connections. No company or strategy can erase your credit history. You simply need to repair it through careful use of your current resources. In the end, you’ll be able to apply and secure almost any loan for that next, big purchase.