logo
Featured on 40:     E-ZPass Sign-Up     The Pit Bull Debate     Sox Trades     Brittany Skydives!     Weather Discussion    
Watch ABC40 News Live!   (View)

What are some easy ways to improve my credit score?

By Karen Goodfriend

 

A high credit rating makes it easier to obtain a mortgage, credit cards and auto loans, plus better interest rates, which will save you money in the long run. Here’s what you can do to increase your credit score: 

1) Correct credit report errors

You’re allowed one free credit report each year. If you haven’t done it yet, request yours online at AnnualCreditReport.com. Check it carefully for any mistakes, such as past-due or unknown accounts.

2) Pay attention to credit card limits

Avoid charging any one credit card up to (or close to) its limit, even if you pay the balance each month. It’s smarter to spread charges on a few cards. Why? Credit agencies look at all your unused credit from all cards, plus that of individual cards, when calculating your score. That’s why getting close to the limit on one card can ding your score despite having plenty of available credit elsewhere. 

3) Don’t cancel credit cards

You earn points for accounts with longer histories, so avoid closing and opening new accounts often. Even if you’re eager to close an account you worked hard to pay off, resist the urge. It’s better for your credit score to keep it open and either never use it or use it only occasionally, depending on fees and terms.

Copyright (c) 2010 Studio One Networks. All rights reserved.

Karen Goodfriend is a certified public accountant and personal finance specialist in Los Altos, Calif. She is also a member of the American Institute of CPAs’ Financial Literacy Commission.

WGGB encourages readers to share their thoughts and engage in healthy dialogue about the issues. Comments containing personal attacks, profanity, offensive language or advertising will be removed. Please use the report comment function for any posts you feel should be reviewed. Thank you.

Comments

WGGB encourages readers to share their thoughts and engage in healthy dialogue about the issues. Comments containing personal attacks, profanity, offensive language or advertising will be removed. Please use the report comment function for any posts you feel should be reviewed. Thank you.
blog comments powered by Disqus