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Doing the following typically has a positive impact on your credit score:
- Paying your bills on time. Delinquent payments and collections can have a significantly negative impact on your score.
- If you have missed payments in the past, getting current and staying current on your payments.
- Paying off debt rather than move it around.
- Re-establishing your credit worthiness if you have had problems. Opening new accounts responsibly and paying them off on time may help in the long run.
- Applying for and opening new credit accounts only as needed.
- Keeping credit cards and managing them responsibly. In general, having credit cards and installment loans (and making timely payments) may help in the long run. Someone with no credit cards, for example, may be seen as a higher risk than someone who has demonstrated a history of managing credit cards responsibly.
- If you are having trouble making ends meet, contacting your creditors or seeing a legitimate, reputable credit counselor.
- Keeping balances low on credit cards and other lines of revolving credit.
- Doing your rate shopping for a loan or credit line within a short period of time. FICOŽ scores distinguish between a search for a single loan and a search for many new credit lines in part by the length of time over which inquiries occur.
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