Improving Your Credit Score

Mobile phones are becoming more and more expensive each day. Because of this, very often mobile carriers will want to perform a credit check before they approve you for a contract. These are expensive contracts, and they want to make sure that you have a good financial history before they give one out to you. If you have a low credit score, this could keep you from getting the type of phone and data plan that you want. While there are other options for you in the mean time, it would be a good idea to start working on your credit score so that next time around you can get the plan that you want.

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To start improving your credit score, there are a few things you should look at. The first thing you’ll want to look at is how much debt you are in. Whether you have taken out loans or used a credit card a lot, a large amount of debt reflects poorly on you. Make a list of all the different debts you have, and list them from the ones with the highest interest rates, to the lowest. Start trying to pay off the higher interest rates first so save yourself some money. Even if you can make only a slightly larger payment each month, it will help you in the long run. If you have many different small debts, consider consolidating them into one loan to make it easier to manage.

Besides paying down your debt, you’ll also want to look at how you are making these payments. On time payments are key for having a good credit score. Even just one missed payment can drastically reduce your score, so you’ll want to avoid this at all costs. Make sure you budget ahead of time to ensure that you have enough money to pay it, and also write down when the payment is due to make sure that you don’t forget. The longer you go without missing a payment, the better your score will be.

This bring us to our next tip – make sure you have a long credit history. Your credit score is designed to show how reliable you are over time, so if you are just starting out, or if you are just now making improvements to your credit file, it may take some time before you have a decent score. Just keep working at it, and be sure to keep up good habits. If you can do this for an extended period of time, you should see your credit score go up.

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Lastly, be careful how you use your credit cards. You want to try and find a happy medium between overspending and keeping it locked away. Try to not use more than seventy percent of your credit limit each month, but also try to spend more than thirty percent. This shows that you are capable of using credit given to you wisely, and that you can be trusted with it. Also be sure to pay off as much of your credit cards as you can each month. Outstanding debts that are too high will harm your score.

While these aren’t the only things you can do to improve your credit score, they are a good start. Remember that this will take time, so keep at it. If you are still having trouble with your credit score after trying some of these things, you may need to talk to a professional financial adviser. But once you get your credit score sorted out, you’ll be able to do a lot more things, including getting a great mobile phone and plan. Good luck!

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