Tip #2: Use 10 Percent or less of your revolving credit
Your credit scores range anywhere from 300-850. About 25 percent of People with credit scores – approximately more than 50 million people – have scores greater than 785, according to myFICO, a subsidiary of FICO.
There is definitely something to learn from these high FICO achievers.
For starters, they have an average of four credit cards or loans with balances, notes myFICO. However, high credit achievers keep a low balance on those credit cards and loans.
Consistent responsible financial behavior pay big dividends over time. It is never too late to rebuild your credit and achieve a high credit score.
Tip# 3: Older credit cards are GOLD
If you have had a credit card for 5-10 years and have always paid on time that is a good sign that you are responsible to lenders.
Closing an old credit card reduces your available credit and increases your balance-to-limit ratio. That is a sign of risk that could lower your credit score and ultimately keep you from getting the best interest rate possible on your mortgage.
Tip #4: Don’t apply for credit more than twice a year
Keeping your credit cards open and active is one thing but you should not run out and apply for 4 cards all at once.
Credit inquiries can look very risky to lenders if they see that you have applied and were denied for multiple lines of credit in a short period of time.
Tip #5: Plan for at least 6 months to review and fix your credit report
Like anything worthwhile, improving your credit score will take time. But you can’t change your credit score if you don’t know that something is wrong in the first place. If you give yourself enough time, you can correct any mistakes and change up any bad habits.
You can order your FREE credit reports from www.annualcreditreport.com you get 1 free credit report from all three credit bureaus every 12 months.
