Credit scores are used by everyone for everything today. Do not let your credit get bad. Credit can be repaired, but it is easier to keep it in good standing - if possible.
How to establish credit and have good fico scores
- Open a bank account.
- Have a few credit cards.
- Do not max credit cards.
- Keep balances low and all but one at $0. Try using one at a time and switch off between.
- Charge but make payments on time. Make ALL payments on time including utility and cell phone bills.
- Do not overdraw bank account.
- Do not let anyone borrow your credit card(s).
- Do not give your number out.
- Do not take cash advances.
- Remember a $10,000 credit card limit does not mean you have an extra $10,000.
- Join a credit watch program.
- Check your credit report a few times a year. Make sure there are no surprises.
- Do not close your oldest credit account.
- Be SMART
When applying for a real estate loan
- Do not apply for a new credit of any kind.
- Do not close credit card accounts.
- Do not max out credit cards.
- Do not consolidate your debt into 1 or 2 credit cars. This gives you a high balance on those.
- Stay current on existing .
- Use credit as normal and as explained above .
About FICO scores
A FICO score is a credit score. Credit scoring is a method of determining the likelihood that credit users will pay their bills. Mortgage lenders, utility companies, cell phone companies and even applying for a rental use this scoring from the 3 major reporting agencies. Scores are calculated using a mathematical algorithm and different points are given to each aspect of credit. Follow some of the tips above to help keep a good score.
Clark Howard
Visit http://clarkhoward.com/ for more tips on credit, how to save a buck and much more. |
