People do not always know the importance of a good credit score. Letting your score deteriorate can cost you a lot of money. Did you know that insurance companies will increase their premiums for people with bad credit? Credit card interest rates go up too for people with bad credit. It's nearly impossible to get a mortgage and if you do, the rates will be higher. And the list goes on....
Your credit score can affect so many areas of your financial life. And yet the FICO score is a bit of a mystery. I took a class about it and nobody really knows how they score it and there are no cut and dry rules.
Here are a few things you can do to improve your credit.
1. Keep your credit card bills below 30% of your available credit. If you are always near the limit, your score will go down.
2. Never, never pay the mortgage or equity loan late. Even one time can really hurt. Automatic payment is a great tool to insure you don't forget.
3. Pay all your bills on time; the credit report shows how many times you paid your bills late. Online banking is great....as soon as the bill arrives, log it in and set the date you want it paid.
4. Keep your oldest credit cards open and use them occasionally. The older your credit history, the better.
5. Don't have too many accounts open; close some of the newer accounts. Too much available credit can hurt your score.
6. Don't have too many inquiries on your credit report. If you are making a big purchase such as a house or car, multiple inquiries do not affect your score because they allow you to shop around. But multiple inquiries to open new cards is never a good thing.
Please pass this info along....we need to educate people on keeping their credit scores healthy!!