Saving with 6abc: Keeping a good credit score

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Wednesday, October 8, 2014
VIDEO: Keeping good credit
Saving with 6abc

If your credit score could use some beefing up, we're here to inch you closer to credit perfection.



Alexa von Tobel, the author of Financially Fearless, has these tips to keep you in good standing.



She says people make simple mistakes such as:



1. Not checking your credit.


She says at least 25% of credit reports contain errors and you should check yours yearly. You can do that for free at AnnualCreditReport.com and report any disputes to the credit bureaus.



2. Running too many checks


If you apply for too many loans or too many new cards in a month your score takes a hit.



3. Missing a payment


Just one 30-day late payment can take up to 160 points off of your score.



Carrying a balance, maxing out your card, and having too many cards also affect your score.



Here's a great tip, even if it's paid off, do not cancel your oldest card. This indicates your credit history and makes lenders more confident in you.



What if you've already made these mistakes?



Tobel says it's okay, if you start following this advice now, you can rebuild your score by as much as 50 points per month.


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