Five Tips to Improve and Maintain Your Credit

Your credit report and the ability to understand it is an important part of your financial life. It can determine whether you can obtain credit, what your credit terms are, and how much it costs you to borrow money.

Use the following tips to help improve and maintain your credit:

• Request a copy of your credit report and check your credit score from the following: Equifax, Experian, Transunion, and Annual Creditreport.com.
  • NOTE: If you're planning on applying for a new loan or credit card, it's VITAL that you check your credit report beforehand. Negative information can lower your score, and you want your score to be the best it can be before applying. Did you know? Your credit report is updated monthly.
    
• Know what your interest rates / balances are on all your credit cards and loans.
  
• Pay your bills in full on time.
  • Paying your bills on time is worth 35% of your credit score and 40% if it is a VantageScore.
    • Did you know? Late payments can drop your score anywhere from 50 to 110 points.
• Keep balances low.

• Know the difference between a soft credit pull and a hard credit pull.
  • Soft Credit Pull = preapprovals for credit and have no impact on your credit.
  • Hard Credit Pull = when applying for a loan, credit, credit limit increase, etc.
    NOTE: Hard Credit Pulls can drop your FICO score and may stay on your credit for two years.

For more information on credit and how it can impact your lifestyle, click here.