Watching Your Wallet: Fixing your credit score
LANSING, Mich. (WILX) - A below average credit score can have a serious impact on your financial future.
The average credit score in the United States is 698. According to financial experts, scores between 601 and 660 are considered fair. Bad scores are usually anything between 500 and 600.
Sara Rathner, a personal finance expert with Nerdwallet, said there are a few things you can do to boost your credit score. The biggest thing is paying your bills on time each month. That includes any sort of loan payments and things like rent and utilities.
“Pay your bills on time because late payments especially ones that are more than 30 days late can drop your score by around 100 points,” Rathner said. “And it’s really hard to come back from that.”
Keep your oldest accounts open and try to pay down your credit debt as soon as possible so your credit utilization is low -- that’s the percentage of your total credit that you’re using.
Rathner said closing accounts as you pay them off isn’t necessarily a good idea if you’re working on boosting your credit score.
More Watching Your Wallet stories can be found here.
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