CREDIT SCORES ARE UP, DEBT FALLS: JOIN THE BANDWAGON

Good news for Joes and Janes! According to CreditKarma.com’s U.S. latest Credit Score Climate Report, credit scores are improving.

From December 2011 to January 2012, the average credit card debt has dropped by 8 percent registering $6,069.  This is the first time that credit scores have gone up since April 2011.

Except for Wisconsin, every state has the reason to celebrate and pat their backs for paying credit card debt this first month. The Cheeseheads however have increased their average credit card debt by 4 percent.

Let us look at the improvement in credit card debt of the following states: According to report Arkansas, Nebraska, and Iowa achieved the largest percentage in credit card debt reduction; the lowest mortgage debt went to West Virginians; And for the lowest auto debt, it was achieved by Wisconsin.

THREE TIPS TO IMPROVE YOUR CREDIT SCORE

There is no quick fix solution to improve your credit score. It takes time, patience and financial focus to do it. Here are three simple but effective steps to fix your credit score.

1. Get a credit card but do not overuse it.

While it is true that you need to have credit in order to boost your credit score, you must also bear in mind that big balances can give you so much burden so it is advisable that you have to be wise in your spending.

2. DO NOT DELAY PAYMENT FOR YOUR INSTALLMENT LOAN

Your credit score will improve by getting installment loan like auto loan, personal loan or student loan. But you have to pay your dues on time to create an impression that you are a responsible person.

3. CREDIT CARD LIMITS MUST BE CAREFULLY CHECKED

If you have a high credit limit but your balance is zero or low it is equivalent to credit score gold. According to MSN Money article, there are instances that your credit card issuer does not report your limit accurately. This is the reason why you have to check your limit.

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