A Better Way to Manage Your Everyday Money - Book - Page 267
than 30 percent of your total credit limit. You don’t need to revolve on credit cards to get
a good score. Paying off the balance each month helps get you the best scores.
● A long credit history will help your score. Credit scores are based on experience over
time. The more experience your credit report shows with paying your loans on time, the
more information there is to determine whether you are a good credit recipient.
● Only apply for credit that you need. Credit scoring formulas look at your recent credit
activity as a signal of your need for credit. If you apply for a lot of credit over a short
period of time, it may appear to lenders that your economic circumstances have changed
negatively.
● Fact-check your credit reports. If you spot suspected errors, dispute them. If you have old
credit card accounts you are not using, keep an eye on them to make sure that an identity
thief is not using them.
If you need help improving your credit score, a credit repair company will negotiate with your
creditors and credit agencies on your behalf in exchange for a monthly fee. When you have a
great credit score, it may be worthwhile to utilize a credit monitoring service to keep your
information secure.
257
