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Five Essentials To Building Healthy Credit

Remember, improving your FICO credit score takes time. The best thing is to handle credit responsibly over time. But here are a few things you can do to improve your credit score.

1. Pay your bills on time. But if you've missed payments, catch up as soon as you can and stay caught up. The longer you pay your bills on time, the better your credit score.

2. Keep your balances low on your credit cards. The proportion of credit lines used affects your score. In other words, the closer you are to being maxed out, the lower your score will be.

3. Don't close unused credit cards. Many people do that thinking it will raise their score. It actually could lower it because of the fact that the the proportion of credit lines used affects your score.

4. Don't open new cards too rapidly. You might be tempted to do that to increase your available credit. But such a move could make you look like a risky borrower.

5. If you are having trouble paying your credit cards, call your creditors and ask for a lower rate or other type of workout plan. Or go to a reputable credit counselor.

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