Posted by Collette | Posted in Weekly Tips | Posted on 06-11-2010
Being credit savvy pays off. High credit scores can mean lower payments and thousands of dollars in savings. Approximately 65% of your FICO score is based on two factors: payment history & utilization. And the higher your balances are in relation to credit limits, the lower the score – even if you pay your card off every month. Here are simple steps to maintain a high FICO score:
- Make all payments on time;
- Avoid negative occurrences (such as collections);
- Keep credit card balances low (under 25%) in proportion to credit limits;
- Do not close old credit card accounts;
- Shop for credit only when necessary.
The best way to improve and maintain your credit score is to keep spending under control, pay bills on time, and avoid applying for extra credit too often. Also, be certain to periodically check your credit report for accuracy. Go to AnnualCreditReport.com, the only government-authorized source for consumers to access a free copy of their annual credit report online.
