Taking Care Of Your Credit

Some advice on taking care of your Credit Score by Samantha Kunkel-Gonzalez from Casa Linda Mortgage

Did you know that the interest rate you receive when you purchase a car or a home is directly related to your credit score? Did you know that the average person does not even know what his/her credit score is? It seems that for something as important as credit is today, people would have figured out the tricks of the credit bureaus by now! Well, I have news for you! There are no tricks-there a few simple things you can keep in mind when trying to build or raise your credit score:Make sure you pay your credit card payments on time!!! If you own a home, the mortgage is even more important to pay on time!

1. Make sure all your credit cards carry a balance of less than 50% of your credit limit.
2. Do not close accounts that you are not using. Accounts with a zero balance can only help you!
3. Make sure you check your credit report at freecreditreport.com once a year, to make sure that there are not any errors on your report! It is more common than you think to have an error on your report!
4. The credit bureaus look at the length of time you have with established credit. The longer the time, the better. Remember, credit cards are part of the credit game—pay off your balance each month, and use it to help your credit, not the credit card company’s pocket! Even if you never have the need to use a credit card, it is still important to have 2-3 good credit cards to establish your credit.
5. Do everything in your power to make sure a bill never goes to collections-once it is there, it is much more difficult to remove!!!

Finally, remember, your credit is an alive entity! Interact with it and take the reins of your financial future and remember, your credit score is in your control!!! Ultimately, managing responsibly your credit will increase your standard of living and save you money!