Your credit utilization ratio should not exceed 30%. This will also allow you to make sure your total debt does not exceed your total credit. The lower your ratio the more points towards your score, so try to keep your credit balance low or at zero.
Your FICO Range and Why It Matters
Plan to diversify credit lines
Having different lines of credit indicates that you have experience handling and maintaining credit. Down the road, this will give you access to more resources and the opportunity to continue building credit. As you assess your goals, understand where you need to invest, which areas need improvement so you can position yourself in the right financial standing to fulfill your long-term goals. However, it is important to remain cautious. Do not over apply for credit. Opening too many accounts is a red flag for creditors and can become overwhelming to you when payments are due. Instead of getting new credit cards, focus on progressive growth in different lines of credit.
Stay up to date
Be consistent in paying, checking and sustaining your credit. Visit annualcreditreport.com to get a free credit report from the credit reporting bureau. Staying up to date also requires periodically checking for accuracy in your report, and fixing mistakes when found. One mistake could get in the way of your plans and cost you later on. Your credit score changes when your credit report changes, however, keep in mind it will not show up overnight. It can take 30 days to a couple of months to improve your credit score depending on your history. Over time, your score will reflect the time and energy you put into understanding and taking responsibility for your credit. Stay determined and remember consistency is key, you will get there. reinforce
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