Improve Your Credit Score By the End of the Year
WITH THESE 3 TIPS
Maintaining a strong credit score is incredibly important, especially with rising inflation. A high credit score will help you qualify for lower interest rates and obtain loans for high-cost items, such as homes or cars. We’re not taught much about credit in school, so many people make the mistake of opening credit cards or taking out loans they can’t pay off. This causes their credit score to go down. It’s not easy to improve your credit score once it’s taken a big hit, but you can do a few things to help it improve gradually.
The ideal password is a long string of random characters. But who can remember all that? People choose easily-hackable passwords like “Fido52” because they’re hard to forget. Fortunately, there are now more options than ever. Password managers, like LastPass, 1Password, and Keeper, will help you generate secure, unique passwords and store them for you. To use a password manager, you’ll need one highly secure master password you will remember. You can then save every password you use and access them as needed — no superhuman memory required. Some web browsers will also offer to remember your passwords for you. It can be handy, but it’s also risky if other people gain access to your computer. Consider this option only if no one else uses the device and you lock it with a secure master password. Some people also prefer an old- fashioned paper password book. You can use these if they make you more comfortable, but you should lock them up and always keep them at home. If you’ve been using repeated and easy-to-guess passwords, there’s no reason to be embarrassed — millions of Americans do the same. But it’s time to make a change. Start updating your passwords today, even if you only do it one or two accounts at a time. It’s one of the best ways to ensure security over your identity and financial future. KEEP OLD ACCOUNTS OPEN. If you’re trying to improve your credit rating, you’re likely making every effort to pay off your bills and balances. You may be tempted to close out each account as you pay it off, but doing so will not improve your credit score; it’s more likely to hurt it. Closing an account lowers your maximum credit limit, which can lower your score. If the account has a record of on-time payments and you paid it off, leave it open. ONLY APPLY FOR NEW ACCOUNTS WHEN NECESSARY. When you go shopping at your favorite store, they’ll likely ask if you want to open a store credit account to save additional money. Don’t do it. Each new account you apply for will show up on your credit report and lower your score by a few points. Try to get pre-approved if you’re trying to take out a large loan for a vehicle or home purchase. That way, if you are pre-approved, you don’t need to apply for the loan, which will save your credit score.
Here are a few tips to improve your credit score by the end of the year.
In 2022, a shocking 23 million accounts across the internet used the password “123456.” Though we’ve been using the internet for decades now, many people don’t understand best practices for their internet security. Even Gen-Z, arguably the most tech-savvy generation of all, is prone to bad password habits. A Harris Poll found that 78% use the same password across multiple accounts! Feb. 1 is Change Your Password Day, reminding us that secure passwords are essential to protecting our identities and information online. Countless internet users think their passwords are safe, only to learn the hard way that they’re not. And when bad actors access your information, it can have long-term consequences for your financial well-being. SAFE AND SOUND WHY YOU NEED SECURE PASSWORDS PAY YOUR BILLS ON TIME. Payment history is the most influential factor in your credit score. If you aren’t paying your bills on time, you won’t see any improvement in your credit score. Lenders don’t want to loan to someone who has a history of missing payments; it’s an unnecessary risk on their part. Make your payments on time, and if you can’t afford the total amount, pay the minimum amount due. Interest will accrue, but your credit score will be untarnished.
For your safety, you should always follow the below password habits:
• •
Using a unique password for every account Making passwords 12–15 characters long
• Using letters (uppercase and lowercase), numbers, and special characters in each password • Avoiding full words, names, or dates
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