Keeping your credit healthy

  What Makes Up Your               Credit Score

      What You Can Do to Help

Payment History

Pay your bills on time, even if only able to make the minimum payment required.  Poor payment history has the greatest affect on your credit score, and can be just as negative regardless of the amount owed (small bills paid late can be just as bad as larger late payments). I suggest setting up bill pay reminders and setting up automatic loan payments.

Amounts Owed

It’s important to establish credit, but to keep your balances owed at an amount well below the maximum amount of credit you have available.  Having extra “capacity” in your available credit looks positive to lenders.

Length of Credit History

Establish credit and keep it.  The more time you have on your side of well maintained credit builds your history.  Even if you have an outstanding available limit (example – credit card) that you have good history but no balance owed, this continues to contribute positively to your credit history.

New Credit

Applying for multiple new lines of credit aggressively within a short time period can create negative affects upon your credit.   Note that checking your own credit report directly from a credit reporting agency will not hurt your score. When shopping for a loan, submit your applications within a limited time. If done in a short period of time, multiple inquiries will count as only one inquiry.  

Types of Credit Used

Keeping a “healthy mix” of credit types which include revolving lines of credit (credit cards), fixed term loans (vehicle loan) and real estate (mortgage) can be reviewed positively on your credit report.

Other Tips to Consider

Check Your Credit Regularly

You are entitled a free credit report review annually by each of the major credit reporting agencies: TransUnion®, Equifax® and Experian®.  You’ll be able to review your credit, identify potential problems and signs of potential identity theft. 

Consider reviewing one of the three every few months throughout the year.  Simply visit www.annualcreditreport.com © to get started.