Credit Tips...part 2

A few more credit tips for you!

3. The Age of Your Credit History -
The score is looking to see if you have a lengthy history of managing your credit obligations. The age of your credit history is determined by the "date opened" on the oldest account listed on your credit report. The older your credit report, the more points you will earn in this category. You should never try and get old, good accounts removed from your credit reports. You want the history!

4. New Credit/Inquiries
When you apply for credit you are giving the lender permission to pull your credit reports and credit scores. Each time this happens, your credit report will reflect what's called an "inquiry." To perform well in this category, you should really only apply for credit when you need it.

5. Credit Mix
You should have a nice diverse list of different types of accounts in your credit report. This includes mortgages, auto loans, installment loans, credit cards, etc.

That pretty much covers the factors that are used in determining your credit scores. Let's do a quick recap:
1. How you pay your bills - on time is good, late is bad
2. How much you owe your creditors
3. How long you've had credit - the longer the better
4. How often you apply for credit - apply only when you really need it
5. Account mix - diversity is good
If you can stick by these five key principles, you should be
well on your way to healthy credit and credit scores.

Credit Tips... part 1

Here are a couple credit tips for you!
1. Payment History - The Most Important Category
Pay your bills on time and don't have a history of late payments, collections, public records, etc. The more incidents of credit transgressions, the more your score will suffer. And if you have recent negative information that will punish your scores more than if they are several years old.

2. Debt
While your installment debt (auto loans and mortgages) are factored into your scores, it's really your credit card debt that's most important. The balances that you carry on your credit cards can affect your scores almost as much as whether or not you make your payments on time.