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There are a lot of different reasons why you might have poor credit. So, the first step
it to narrow down the possibilities. First, pull your
whole credit report for free from annualcreditreport.com
Go through your credit report. If you see something that looks wrong,
disputed it. Credit report errors can negatively impact your credit score.
The most common errors are outdated personal information,
mistaken or fraudulent accounts and incorrect account details.
We have a great article that tells you how to dispute errors in the description part
of this video. Assuming that everything in your report is correct,
here the big things you can address. Keep your credit card balances to less than
30 percent of your total credit limits
above that and lenders get concerned that you might not be able to pay it off
or they're relying too much on your credit cards. If you've missed a payment
recently
make sure it doesn't happen again it'll cost you. Each time you apply for credit
card or loan
it causes the hard inquiry on your report, which dings your credit score.
A lot of inquiries will significantly damage your score.
So avoid applying for a lot of credit at once. If your score is low because you
never established credit
consider opening up a secured credit card. So that should get you started,
but also remember that rebuilding your credit can take a lot of time
and patience.
That's right. Stick to good habits like these and should see a gradual improvement.