What's the Score with Your Credit Score? – Part Two

In the first part of this article, we found out how your credit score is calculated. Here are more tips on how to keep your credit in good standing.

Dodge your credit with the best advice

If you are planning to refinance your mortgage or do anything else that requires borrowing, it is better check your FICO scores before doing the next move. Here are eight important tips to remember in order for you to improve your FICO scores:

Settle on time. This is an unwritten rule in credit cards: Never pay late. Delinquent payments have a negative impact on your FICO scores.

Pay it off. The fastest way to increase your score is to pay down an existing debt. If you pay a maxed-out card in full, there should be a dramatic increase in your score.

Spread it out. If you have more than one credit card, it is better to spread your balances. This could help your score slightly, as you are lowering your balance-to-credit ratio on each card.

Never open new accounts quickly. New accounts can lower your average account age, which will have an effect on your score.

Re-establish credit history. Opening new accounts responsibly and paying them on time will raise your credit score in the long term.

Apply for and open new credit if necessary. Do not open accounts just to have a better credit mix. It will not raise your credit score.

In all, credit scores can make or break your financial standing. When you have a good score, you can go into all the negotiations for the best lending programs. But the people with low scores will find themselves at the end of the line.

The best advice is to manage your credit wisely. Know all the options available.

Click here for the first part of this article.

Sign up on the box at the right to find out more about your credit score, and other options that you can use when dealing with credit and loans.