Your credit score is important in many
ways. It allows you to purchase a home, buy a car, and can even be a
factor in getting the best insurance rates. However,
credit scores can be confusing too. Here are 3 ways to help protect your
score.
1.
Order an updated credit report each year for you and your spouse. Many
people don’t realize that there may be mistakes on their credit report that
lowers their score! In fact, a recent study showed that 79% of credit
reports contain some kind of error! Go to HTTP://WWW.ANNUALCREDITREPORT.COM to
request a free copy annually from each of the three major credit bureaus.
2.
Avoid excessive credit inquiries. Only run your credit report when you
are ready to apply for credit and make a purchase. Consistent and ongoing
inquiries can lower your score because the bureaus assume that you will be taking
on more debt.
3.
Long history counts! The best scores have many years of positive credit
history. That’s why it’s a good idea to keep your unused accounts open
rather than closing them. They continue to show positive long-term
history and help your score even if you’re not using those credit cards on a
regular basis.
Obviously,
you also want to make sure that you pay all of your bills on time. By
keeping your long term accounts open, avoiding excessive inquiries, and
checking your report annually for any mistakes, you’ll set yourself up for the
best credit score possible. And with a great credit score, you’ll save
thousands of dollars in interest on large long term purchases and in insurance
premiums!
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