Let’s talk about your credit score. It’s really important. It can determine whether you get that home or not. And it can determine whether you save money on the rate you’re going to pay based on your credit score. So, of course, you want to always make your payments on time, but how can you actually improve your score? What can you do?
So here are a few little known facts that have changed since Trended Credit that came into being a few years ago.
- First, always keep your balances to 30% of the limit. If you have $1,000 limit, don’t ever go over $300. Better yet, pay off that credit card every single month. Don’t carry a balance if you can help it.
- Second, if you can’t pay off balances right away, go to that credit card issuer and ask them if they’d be willing to give you a higher limit. The amount you owe then becomes a smaller percentage and that can help your score.
- Third, and this is one of the most important points, do not close any credit lines that you have from the past. That is credit history that you’ve built up. You want to keep that good history. It’s like getting straight A’s in school and then not wanting to share your report card. Keeping good history will help your credit score. The longer you have a good history, the better it reflects in your scoring system.
- Fourth, let’s talk about some of those collection accounts you may have. If you have them and they popped up, just paying them off may not be the right thing to do. Just wait and see on those because by paying them off and bringing them current right now, you may actually hurt your credit score significantly by bringing them to the front of your credit history. That’s not what you want to do.
So those were just a few quick tips for you and I hope they help. If you need any more information, give me a call or text me and I’ll help you improve your credit and get into the home you’ve been dreaming about.