Ask your credit union representative
for your credit score. Credit scores
range from 300 to 850; a score
around 700 is considered good,
while anything above 720 is excellent.
A score below 620 is generally
considered poor. Once you know
your starting point, you can create a
goal credit score and map out a plan
of how you will get there.
FIND YOUR SCORE.
A part of your credit score comes
from how long you've had credit, and
the longer a card is open, the higher
your score will be. Keep old accounts
open; they can help boost your score
and balance out newer lines of credit.
DON'T CLOSE
OLD ACCOUNTS.
Start by paying down your card
with the highest interest rate first,
and aim to get all balances below
50% of your credit limit. Since 33%
of your credit score is based on the
amount you owe, work on relieving
your debt in any way that you can.
PAY DOWN YOUR
CREDIT CARD BILLS.
Avoid opening new cards at department stores
or gas stations for one-time promotional
discounts. New cards carry 10% of your credit
score, and can bring down the average age of
your credit, lowering your score even more.
DON'T OPEN NEW CARDS
THAT YOU DON'T NEED.
T IM E TO E A RN SO M E
CREDIT
EXTRA
Once you decide you're mentally, emotionally
and financially ready for homeownership, it's a
good idea to check your credit score, as it will
largely determine the terms of your mortgage.
If your credit score is lower than you'd like due
to missed payments or maxed-out cards, it's
in your best interest to put off purchasing a
home until your credit score rises.
With a few strategies and a commitment
to smart money management, you can
boost your score and save yourself a lot
of money in the long run. Just follow
these tips:
