Want to save MONEY?

By
Real Estate Agent with Realty Executives Premiere

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!!

Posted by

Diane Lynch

Realty Executives Premiere

Wheaton, IL

Comments (8)

Jane Peters
Home Jane Realty - Los Angeles, CA
Los Angeles real estate concierge services

This is good advice, Diane.  After all, without good credit where are we.

Jan 25, 2011 03:05 PM
Diane Lynch
Realty Executives Premiere - Warrenville, IL
Real Estate Broker

Jane - so true!

Jan 25, 2011 03:19 PM
Ridhi Raheja
Movement Mortgage (Illinois) - Naperville, IL
FHA, 203k, VA, Jumbo, PreApproval, Jumbo Home Loan

Diane, Practical things that we all should follow just to keep our lives simple but now even more so because it impacts our everyday costs of running our lives.

Aug 04, 2011 03:42 PM
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

Diane,  This is great advice for to keep credit scores good.  So many people today face financial challenges that cause their credit to be negatively impacted before they decide to short sale.  I tell them ... it will pass.  In two year +/- their credit will restore provided they continue to make all payments timely.

Apr 10, 2012 02:18 PM
Diane Lynch
Realty Executives Premiere - Warrenville, IL
Real Estate Broker

Yes, that is true....thanks for reading my post...

Apr 13, 2012 12:10 PM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Diane, These are good tips for consumers. I hope people will read this post .Ā 

Jan 02, 2015 07:54 PM
Tom Braatz Waukesha County Real Estate 262-377-1459
Coldwell Banker - Oconomowoc, WI
Waukesha County Realtor Real Estate agent. SOLD!

Diane Lynch

Very goog post. That really is something when an insurance company increases it's rates based on credit

Jan 02, 2015 11:06 PM
Diane Lynch
Realty Executives Premiere - Warrenville, IL
Real Estate Broker

Gita, thanks for reading my post.

Tom, I was surprised to learn that FICO affects insurance premiums!

Jan 03, 2015 12:27 PM