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Did you know you can improve your credit score by paying off the balance each month?

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Mortgage and Lending with Academy Mortgage.......We are a Equal Housing Lender CO NMLS2421 : NMLS 264534

Did you know you can improve your credit score by paying off the balance each month?

You can improve your credit score by using your credit card regularly and paying it off entirely each month.  Credit Bureaus view this as a responsible use of credit. 

Photo courtesy of Michelle Meiklejohn at www.freedigitalphotos.net

There is a catch however: if the credit card company reports your balance to the Credit Bureaus after you’ve paid it off, it may look like you did not use it at all.  I recommend my clients make the payment on the credit card right before the statement is cut, and that generally helps avoid this issue.  Another trick is to check your credit score every couple months to make sure it is actually improving.

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_______________________

Ellen Adams with Academy Mortgage 

18 YEAR VETERAN IN THE MORTGAGE INDUSTRY

    Phone: 541-521-7192

    Cell: 541-521-7192

    Email :Ellen.adams@academymortgage.com

   Website: www.academymortgage.com/ellenadams

    NMLS: 264534 

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Kate Bourland
Marketing with Kate - Redding, CA
Onlilne Marketing Mobile Marketing

I do wish the the credit bureaus and credit cards were required to make credit scoring more standardized.  Thanks for sharing!

Jan 19, 2011 06:13 PM
Anja Kerstens, 669.270.8034
Compass - Morgan Hill, CA
GRI, NHCB, CDPE, CHS. Silicon Valley Homes

Kate, I second your comment.  

Ellen, your recommendation is great.  If consumers don't regularly check their credit reports they won't know or could challenge claims that aren't true; these claims affect your credit score

Jan 19, 2011 09:42 PM
Connie Harvey
Pilkerton Realtors - Brentwood, TN
Realtor - Nashville TN Real Estate

Ellen, great tips for those that need to get their scores up.

Jan 19, 2011 11:22 PM
Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400
The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803 - Plainview, NY
Long Island Condo and Home Specialists

Ellen, Giving tips like you do is a sure way to keep your name out there with your helpful hints. Keep them coming!

Jan 19, 2011 11:52 PM
Ellen Wright Adams
Academy Mortgage.......We are a Equal Housing Lender - Eugene, OR
LoansByEllen- Licensed in Oregon

Kate: It would be nice to have credit scoring more standardized.  Thankfully the law passed in 9/10 that requires credit card companies to send the statements 30 days before payments are due vs. the old law requiring them sent only 10 days before they're due.  That was a nice change!

Anja: It is easy for incorrect info to pop up on your report, and if you're not checking it regularly, you'd never know!  

Connie: Thank you!

Larry & Sheila: Will keep them coming!

Jan 20, 2011 08:35 AM
Retired from ActiveRain
Baker, OR

Ellen, This is a good tip that should become better known.  I have had people proudly tell me that they don't use their credit cards so that they can get a higher credit score.  There's a big difference in cost between a 719 FICO score and one that is 720 or above!

Jan 20, 2011 02:48 PM
Ellen Wright Adams
Academy Mortgage.......We are a Equal Housing Lender - Eugene, OR
LoansByEllen- Licensed in Oregon
You're absolutely right; you know your stuff Rick!
Jan 20, 2011 03:03 PM