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Your credit score can affect many different areas of your life. From home loan approval and interest rates to the premiums you pay for car insurance, getting and keeping a high credit score is more important than ever in today's society. In terms of defining what exactly a high score is, keep in mind that scores ranging from 675 to 719 are good and anything 720 and above is considered excellent. While many people understand the importance of a good credit score, most do not know the best practices to help increase their score. If you want to achieve a good or excellent score, these five steps will help you get there:

1. Get a secured credit card: If you do not have a credit card or any credit already established, a secured credit card is a great place to start. Secured credit cards are just like regular credit cards except for the fact that they require a security deposit or down payment in order to be approved. After a successful track record is established, you will most likely be quickly approved for an unsecured card.

2. Pay off Your Bill Each Month: When using a credit card, it is important to only charge what you can afford to pay at the end of each month. While it is important to spend within your means, it is a good idea to use your credit card rather than let it sit unused. In addition, it is a good idea to only spend around 50% of your limit each month as repeated months of maxing out can take a toll on your credit score.

3. Pay On Time: Without a doubt, paying your credit card bill on time each month is the single most important thing you can do to maintain a top notch credit score. Early on, even one late payment can significantly damage your score.

4. Avoid Applying for Numerous Cards and Loans: Each time you apply for a new card or loan, your credit score takes a small hit. With that in mind, it is best to use one credit card, keep your balance low, and pay on time.

5. Check Your Progress: After six months of regular payments, it is a good idea to check your score. Keeping an idea of ​​your credit score is a good habit as it allows you to plan loans and big purchases effectively.

A high credit score is an asset in today's world and one that is sure to make your life easier when it comes to making big purchases such as home or car. Whether you already have a credit card or are looking to apply for your first one, these five tips should serve you well as you work to build a high score. After following these steps, you will be prepared to approach a lender with confidence and be welcomed with open arms and a low interest rate.

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Source by Curt Gwaltney