Credit impacts so many of our life transactions, landlords and employers often review credit reports for potential candidates, insurance costs for car, home, and other policies can be priced according to a credit profile and of course the interest rates charged on credit cards, auto and personal loans and mortgages use credit profile as a major factor in pricing. The better the credit the better the rates on any financial products that are risk based.
Here are some ways to keep credit scores on the rise:
- Of course, pay all bills on time. There is a saying “on time is late and early is on time”; well that saying should be applied to bill paying.
- Keep credit line/card balances to 30% of the available credit on the line.
- One way to improve a credit score would be to get an increase on a credit line so that the balance on that line is at 30%. Another would be to shift some balance to another account in order to keep all balances at 30% or less that the line.
- Do not close out any credit lines that you are not using. Cut up a card that is not used but do not close it, the more available credit that is not in use the more responsible the profile appears.
- Do not pay off collection accounts – consult with your mortgage professional before doing this, paying off a collection can bring that collection to the forefront and actually hurt credit.
Call me for an identity theft and credit review to be sure you and your credit are on the right track, always rising.
There is love and money on the line when buying a home, and I won’t break your heart or your bank!