Your guide to raising your credit score part 2

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When it comes to applying for a mortgage and buying a home, good credit is a must.

Many people struggle with bad or mediocre credit, but you shouldn’t let it keep you from realizing your dream of buying a home! At AAA Insta-Move, we not only provide a long list of professional moving services in Sanford, we are also dedicated to helping you enjoy your new home to the fullest. That’s why, in our previous blog, we went over the first couple of steps for building your credit. Keep reading to learn more:

Step #3. Make it a point to make your payments on time.

Late or missed payments will hurt your credit score more than any other negative items in your credit report. While you may not be able to go back and fix past payment mistakes, you can make it a point to make all of your payments on time in the future. If you have a hard time remembering to pay your bills, setting up a calendar reminder or a phone alarm can really help.

Step #4. Start paying off your debt.

While it’s true that using credit helps you build credit, having too much debt can also hurt your credit score. Your credit card balances shouldn’t exceed 30% of their credit limit. For example, if you have a credit card with a credit limit of $1,000, the balance of that card should never exceed $300. Take steps to pay off your credit, starting with cards and credit lines with the highest interest rates. If you carry high balances, you can also try asking for an increase in your credit limit, but just make sure that you don’t start spending more money because of your increased limit.

We have just a couple more steps for you to help you raise your credit score. Please stay tuned for our next blog to learn more.

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