The Little Number that Makes a Big Difference
Your credit score is one of the key deciding factors for life’s big purchases. A good score means you get better interest rates and in some cases, more flexible payment terms. Conversely, a bad score may prevent you from achieving your goals as it often results in higher payments or even your application being denied. While there seems to be a number of places to check your credit score, many people don’t know how to improve their score when they find out they have a low one.
Here are some simple steps you can take to get back on track:
- Pay your bills on time – every time. It is not worth the risk to delay making your payments.
- Immediately pay accounts that have gone into collections.
- Maintain older accounts. Credit accounts that are 2 years or older show stability.
- Limit yourself to four to six accounts. Too much credit can be seen as a risk especially if you have high balances.
- Closing accounts can affect the ratio of your available credit, so be careful not to negatively affect your score.
- Maintain a variety of accounts: Credit cards, a mortgage or an auto loan shows you can handle a mix of credit responsibilities.
- Check your credit report for errors and inaccuracies and fix them promptly.
Knowing the basic fundamentals about how to improve your credit score will help you secure a stable future. Visithttps://www.bellco.org/CreditEd.asp to learn more.