Video: Five Tips for a Healthy Credit Score
Video Transcript: Five Tips for a Healthy Credit Score
Hi. I’m Elsa M. for Quicken with five ways to maintain a healthy credit score.
Your FICO credit score is a number in the range of 300-850 that represents your ability to repay lenders. A score above 760 usually secures the best interest rate on loans. Slip under 700 by just a couple of points and your interest rate starts to jump.
These days, credit scores are not only used by lenders but by everyone from landlords to prospective employers. A bad score can keep you from getting an apartment, a mobile phone or even a job.
How do you keep your credit score in good shape?
- First and foremost, pay your bills on time. The longer an account is open with no negative reports, the better.
- Show you can handle debt. Keep credit card balances well below maximums. Balances of more than even 30% of the credit limit can hurt your score.
- Don’t carry more credit cards than you need. Scores reflect total debt and total debt capacity, called credit utilization.
- Review credit reports, periodically. TransUnion.com, Equifax.com and Experian.com post records of payments and lapses for all debt obligations.
- If you spot an error, alert the credit bureaus immediately. They must launch an investigation and inform you of results, usually within 30 days.
Remember, a good credit score is an asset you don’t want to lose. So be vigilant.
For more information on maintaining a healthy credit score, visit Quicken.com.