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Six ways to raise your credit score

Are you worried about your credit score? You are not alone. As adults, few things can impact our lives to the extent that a poor credit score can. Lower scores affect your ability to get a loan, as well as the cost of that loans as well as the cost of things like auto insurance and in some cases a low credit score can even cost you getting a new job.

It is crucial that we keep a good credit score, but unfortunately credit scores are very easy to ruin, and very difficult to improve.

Let's take a look at a few ways you can increase your credit score.

1. Check for errors: This is probably the easiest thing you can do to help your credit score. Not every report has errors, but most people don't even take the time to review their credit report to make sure it is correct. It is very easy to obtain a free copy of your credit report, and it is something everyone should do at least once a year. If you do find an error, report it immediately, and you could find a nice jump in your credit score in just a couple of months. Removing incorrect data from your credit report may be the easiest way to boost your score.

2. Pay down your credit cards: This tip is not so easy to do. If you have a lot of debt, it can take a while to get your debt lowered, but you have to try to put as much as possible towards your outstanding debts as possible. The best debt to attack first is your credit card debt, or other high-interest borrowing. Lenders like seeing low outstanding borrowing in installment loans, but it is revolving credit, such as credit cards, that they pay the most attention to. A good rule of thumb is to get your balances below 30% of your total available credit, but obviously the lower the better.

Michael Fowlkes

Michael Fowlkes is a financial writer who has been with the Fresh Brewed Media family since 2004. Over the course of his tenure with Fresh Brewed Media, he has worn many hats, including portfolio manager, options analyst, and writer. Michael received his undergraduate degree from Virginia Tech in Accounting and got his start in finance working as a stock trader for six years at Chase Investment Counsel in Charlottesville, Va.