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Ways to fix your credit score

A below average credit score can have serious impacts on your financial future.
Published: Apr. 13, 2022 at 2:56 PM EDT
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InvestigateTV - A below average credit score can have serious impacts on your financial future.

The average credit score in the us is 698, according to data from Vantage Score. Scores between 601 and 660 are considered fair. Bad scores are usually anything between 500 and 600.

If you need to boost your score, Sara Rathner, a personal finance expert with Nerdwallet, said there are a few things you can do.

Number one 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 and it’s really hard to come back from that,” Rathner explained.

Also, 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.