Want to have good credit and all of the perks that come with it?
Your credit report is used to determine how much you pay for your mortgage, auto loan, credit card, insurance, and even whether you get a job.
Wouldn’t it be great to get the best rates on all of the above without worrying about having to use cash?
So how do you get good credit?
Pay your bills on time
There’s no surprise here, 35% of your credit score comes from your payment history.
Pay your bills on time and your score will be rewarded, make a late payment and it can cost you as much as 100 points.
Get your finances in order, set up auto payments, and make your payments on time, every time.
Keep Your Credit Card Balances Low
Maxing out your credit cards lowers your credit score.
Simple, it looks like you’re short on cash and can’t afford to pay your bills without the help of credit cards.
On the flip side, carrying a low balance shows that you’re just using credit cards for convenience.
So how low should you keep your balance?
Your balance should be below 20% of your credit limit.
Don’t Apply For Too Much Credit At Once
Every time you apply for credit, an inquiry shows up on your credit report.
Applying for too much credit at once lowers your credit score because it makes you look like your running out of money.
So limit yourself to no more than one application for credit every 6 months.
Don’t Close Old Accounts
The average age of your open accounts counts for 15% of your credit score.
Closing old accounts may shorten your credit history and may lower your credit scores.
Keep your accounts open and active.
Whether you have a question, need a consultation, or want to use our services to improve your credit score, CreditFirm.Net is here to help.
So don’t be shy, just ask.