1. A lot of people think it’s a good idea to close old accounts, but that will actually hurt your credit score.
2. The other side of that coin is opening new accounts can hurt your credit score, especially those that get a discount for opening a new retail account. For one thing they usually make that purchase your total line, which means you’ve actually used 100% of your available credit. So opening new accounts can have a negative effect on your credit until established.
3. Always pay bills on time or early. One 30 day late can have significant impact.
4. Avoid co-signing loans.
5. Paying off an old collection account can actually hurt your credit score instead of help it. Even if you pay it off it will remain on your credit for 7 years.
6. Keep revolving debt to a minimum.
What Makes Up Your Credit Score?
Payment History 35%
Length of History 15%
Type of Credit 10%
New Credit 10%
Healthy Credit Mix Example:
– Two installment loans with balances
– Three revolving credit accounts with balances less than 30% of your maximum credit balance
– No collections, late payments or public records
– Accounts with long payment history and no balance
For more information, I can be contacted at:
Dependable Mortgage Co.
Rhonda Sherman, Owner
License # 100008357 NMLS # 381084
145 Grand Avenue, Suite B
Grand Junction, CO. 81501
(970) 257-1502 or (970) 250-8613
Website: Dependable Mortgage Co. (Apply online 24/7)
Regulated by the Division of Real Estate
An Equal Housing Lender