Credit Scores

When you apply for credit, depending on where you live, lenders may determine your credit risk by examining your credit rating or scores. Organizations can rely on credit bureaus, which track and keep credit information about you that is used to calculate your rating. This might include items like your payment history, the amount of money you owe, the length of your credit history and the number of recently opened credit accounts. Different bureaus have different methods and may use different information, so your credit rating may vary between them.

10 Ways to Use Credit Wisely and Keep Your Credit Strong

1.     Complete credit applications carefully and accurately.

2.     Use your credit lines responsibly — don’t let them reach their limit or spend beyond your means.

3.     Choose your credit cards wisely and make sure you understand all of the terms and features.

4.     Attempt to pay your credit card balance in full quickly to avoid overpaying interest, but at least make the minimum payment by the due date.

5.     Always pay bills on time.

6.     If you have problems paying your bills, contact your creditors. In many cases, they will work with you to figure out a payment plan.

7.     If you move, let your creditors know your new address as soon as possible to avoid losing bills or receiving them late.

8.     If your credit card is lost or stolen, report it to the issuer immediately.

9.     Where available, check your credit reports periodically for inaccuracies and immediately report errors to resolve any issues.

10.     Establish a consistent work history.