Help for 6 Common Money Issues
Burden #5: Your Credit Score Is Abysmal
How to Shed It: First things first: Go to AnnualCreditReport.com, where you can get your credit report for free from the three major credit bureaus. “Look for errors that may be dragging down your credit score,” says Anderson. “There may be something that doesn’t belong to you or something that’s been settled and should be removed.” If your credit report is free of errors, then the best way to improve your score is to keep making payments on time and avoid using more than 30% of the credit available to you (known as your credit utilization rate). “So, if you have $3,000 in credit available, don’t use more than $1,000,” explains Anderson. Last tip? If you want to close a credit card to streamline your accounts, make sure that you don’t shutter your oldest card—the length of your credit history is one of the most important factors affecting your score.