Ask your banker/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 IME TO E A RN S OME
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: