11 steps to improve your credit score
News from ConsumerReports.org:
Don’t open too many new credit accounts at once
By doing so, you lower the average “age” of your accounts, which can lower your credit score.
Keep credit balances relatively low
Maintaining a revolving credit balance under 10 percent of your total credit line is wise, experts say. A higher ratio indicates an elevated credit risk.
Beware of points-driven high balances
If you charge everything on your rewards card for the points, switch to cash or a debit card for a couple of months before applying for new credit. Lenders can’t tell from your score whether you zero-out your balances every month. They’ll see your credit score, a snapshot in time, showing that you’re charging a lot relative to your credit limit, which is a negative.
Maintain a variety of credit types
Successfully paying, say, an auto loan, a
Which Credit Score Should I Pay Attention to?
News from STLtoday.com:
There is no one credit score. There are many.
The one that matters the most is the credit score that a lender looks at when considering your loan or credit card application. So how do you make sense of all of the credit scores out there?
Most lenders use FICO scores or VantageScores when evaluating consumer credit applications. And among those, there are hundreds of custom scores for specific uses. All are based on payment history, debt usage, age of credit accounts, credit mix and credit inquiries — the basics of great credit. And all are designed to predict how likely consumers are to repay a loan. The three major credit reporting agencies have all developed scores as well, and sometimes they develop custom scores for particular clients. Each has its own method to predict which consumers are most — or least — likely to pay loans or credit cards as agreed.
The credit bureaus also make some scores available to consumers. These are often given to consumers for free, and they can be good tools for learning about credit…………… continues on STLtoday.com
Improve your credit score by making payments on time and keeping cards at a balance less than half the credit limit. Learn how to improve your credit score f…
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