How To Maximize Your Credit Score
BY: Cindy Mack
- Use the credit. You need to establish that you can handle credit. So, when issued a credit card, use the card at least once a month. You don’t have to charge a lot on the card. But by using the card and even paying the balance off each month, you will establish a history of making regular monthly payments.
- Pay your bills on time.
- With revolving credit, such as a credit card, you want to keep your balance to limit below 40%. So, if you have a limit on a credit card of $1000. You do not want your balance on that card to exceed $400. A higher balance will start to negatively impact your score even if you pay on time.
- Don’t open new accounts within a few months of applying for a mortgage. Any new account will initially have a negative impact on your credit. That will reverse once you have proven you can manage the new debt and continue to pay on time. So, resist the urge to take advantage of a discount offered on a store credit card when you are getting ready to apply for a mortgage.