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How to Improve and Maintain Your Credit Score

What Is a Bad Credit Score?

A bad credit score can make borrowing money difficult and expensive. A FICO® Score below 580 or a VantageScore® below 600 is generally considered poor. Lenders may have different criteria, but understanding these ranges can help you gauge where you stand.

Consequences of a Bad Credit Score

Having a low credit score can lead to several challenges:

• Difficulty getting approved for loans or credit cards
• Higher interest rates and less favorable terms
• Potential rejection for rental applications
• Required security deposits for utilities
• Challenges in getting a new cellphone plan
• Possible issues during employment background checks
• Higher insurance premiums in some states

How to Improve a Bad Credit Score

Improving your credit score involves several steps:

1. Check Your Credit Score

Start by checking your credit score and report to understand the factors affecting it. Look for inaccuracies and dispute any errors.

2. Pay Your Bills on Time

Payment history is crucial. Set up autopay, change payment due dates, set reminders, or ask for help if needed to ensure timely payments.

3. Pay Down Debt

Reduce revolving debt using methods like the debt avalanche or debt snowball. Consider a balance transfer credit card if you qualify.

4. Limit New Credit Inquiries

Avoid applying for new credit frequently, as hard inquiries can lower your score. Soft inquiries, like checking your own score, do not affect it.

5. Boost Your Credit

Use services like Experian Boost® to add positive payment history from utility, rent, and other bills to your credit report.

6. Get Help Building Credit

Consider becoming an authorized user on someone else’s account, working with a cosigner, or applying for a secured credit card or credit-builder loan.

How Long Does It Take to Improve Your Credit Score?

Improvements can start within a month, but significant increases may take several months or more. Consistent, responsible credit behavior is key.

How to Maintain a Good Credit Score

Once you’ve improved your score, maintain it by:

• Paying all bills on time
• Keeping credit card balances low
• Only seeking new credit when necessary
• Keeping your oldest credit card account open
• Creating a budget to manage spending and savings

The Bottom Line

Poor credit is not a reflection of your character. It’s never too late to improve your financial story. Start with these strategies to boost your score and maintain it for better financial opportunities.

For any mortgage service needs, contact O1ne Mortgage at 213-732-3074. We’re here to help you achieve your financial goals!

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