Depending on where you are in your life, you might be ready to improve your credit scores. Many people in America are realizing that great scores are made over time – just like healthy living, it’s the “conscience” decisions we make that are so very important. We see 7 things everyone should be aware of when trying to figure out what will help create a better credit Score.
“Success on any major scale requires you to accept responsibility . . . . In the final analysis, the one quality that all successful people have is the ability to take on responsibility.”
- Don’t allow another Doctor’s Office to put a collection on your credit report. Figuring out how to END “new” collections to your credit report, taking responsibility for these bills, and working out a payment plan on all future medical bills – is critical. It’s a habit some people get into, and constant collections added to your report, year after year will pull your score down.
- Pay your credit cards down. If your credit limit is $2000, and your balance is $1750 every month, you are not going to have the BEST credit score you can. The balance should ideally be below 30% of the high credit.
- Don’t PAY all of your credit cards off every month! I know, it’s counter intuitive, but if you have less than 20 years of perfect credit, this is important. Carry a balance of $10 to $25 dollars a month, and pay the little bit of interest – this will keep your scores UP!
- NEVER go over your credit limit. The credit card companies allow you to do this – and then it SLAMS your credit score!
- Make Payments on time… if you are going to be late on something – be late on your phone bill, not your car payment. Unless you are going into a collection account, utilities do not report your payment history, credit cards and car companies do.
- Get the BEST arrangements you can on Student loans, and remember that those are Installment loans – so if you just have Student Loan debt, you do not have a “balanced” credit profile. You ideally want to have 3 credit cards to offset student loan debt.
- Short Sales are treated like a foreclosure in many cases.
Okay, so that last one doesn’t apply to many people – but you wouldn’t believe how many people we talk to who have had a short sale, and don’t realize it hurts your credit score. It does. There are a small number of times where the short sale does not impact the credit scores – but for the most part, a short sale will impact your credit report the same a foreclosure would for at least 5 years. Good Credit Advice!