Top 5 "Do's and Don'ts" of Credit

Blog excerpt from the Credit Academy

There are so many things that you can do to maximize your credit score. And, there are so many more that could hurt if you do them at the wrong time. This week we will talk about all of the things that you can do to maximize your score and next week we will dive into the things that you should avoid.

Top 5 Things to Do to Maximize Your Credit Score
1) Work with a knowledgeable and reputable company. There are many things you can do on your own, but it helps to have someone who can help you pinpoint what needs to be paid and what can wait. If a company tells you that they dispute all of the items open your credit report or they want you to pay off every item on your credit report, then BEWARE!
2) Avoid any new collections. If a creditor calls and says they are about to report something, do everything you can to pay it off before they report. New collections can drop your score significantly.
3) Keep credit card balances as low as possible and pay them off every month if you can.
4) Keep all payments on time. I know this seems simple, but sometimes you have to choose what to pay and what not to pay. If this is the case, pay as many items as you can on time each month and make sure to keep items like mortgages and cars on time no matter what. Keep the late payments to one account if you can. And, call the creditor and see if there is a payment arrangement you can make until you can catch things up. This is only a last resort though.
5) Keep one credit card open at all times. You don't have to use it much, but having a revolving credit line open that has a low balance can help your score tremendously.