How to Improve Your Credit Score!

As I have mentioned in a previous blog, your credit score is VERY important.

What if your score isn’t what you’d like it to be, what can you do to improve it?

Keep the cards you open at a minimum.

Every time you open a new line of credit through a plastic card, the company takes a look at your credit. If you have too many companies are taking too many peeks at your credit, this will lower your credit score.

DON’T MAX OUT YOUR CARD!

Just because you may have a $10,000 limit on a card, does not make it a good idea to borrow that much money on it. As a rule of thumb, only borrow half of what the card limit is. If you have a $10,000 limit on a card, it is better for your credit score to borrow only $5,000 – or 1/2 of the limit.

Never cancel a credit card once you have one.

This may seem like a good practice to tie up all the loose ends when you no longer are using a credit card, but canceling the card also cancels all the credit history you have with them which makes up a large sum of your total credit card history. Rather, cut the cards up and/or keep lower limits on them.

Make sure your bills are paid ON TIME!

Anything over 30 days will ding your credit.

Spread your debt around.

It is best to have your debt spread out with different loans like car loans, mortgages in addition to plastic. This way, there are more sources to show your history.

Do not put more on your cards than you can pay off each month.

Keep an eye on your credit score.

There are different ways to check it like freecreditreport.com.

If you find anything on your credit report you disagree with – dispute it.

Credit companies are not perfect and sometimes there are mistakes!

Make sure you know your credit card limits.

If you do max out your card and then go over, this doesn’t sit well on your credit report, either.

In other words – monitor your spending and keep a tight rein on it!

Credit is great – when it’s good. Poor credit can be a large weight around your neck hampering what you really want to do. So, start looking at your credit as a real asset in your life and guard it. By taking care of it, it will take care of you.

If you want more ideas on how credit can work for you in even buying your home, contact me!!