How to Improve Your Credit Score

Almost no one is perfect when it comes to credit scores. The average score for Americans has been inching up over the past decade and is now close to 700. Many lenders consider that a good number, but the highest possible score is 850,  according to Fair Isaac Corp., or FICO, which developed some of the most widely used models for credit scoring. The lowest possible score is 300.

So how can you nudge your score higher? Here are some simple steps you can take to improve your credit score over the next year:

When it comes to credit scores, chances are there's room for improvement. By consistently paying your bills, getting rid of existing debt and checking your credit reports for accuracy, you can gradually improve your score and increase your chances of getting approved the next time you need to apply for a loan.

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