Improving Your Credit Score

Keep your credit score in shape by avoiding these bad habits:

  • Not paying bills on time or not paying at all.
  • Maxing out your credit cards – Even if you keep up with minimum payments, it can hurt your score, because one element of your score is the percentage of your available credit in use.
  • Closing old cards or cards with balances – This may sound reasonable if you’re trying to reduce credit use. But, your length of credit history counts for 15% of your credit score.
  • Applying for several credit cards or loans – Expanding the number of cards or lines of credit you have makes it look like you’re in trouble financially and trying to supplement your cash flow with credit.
  • Having too few kinds of credit – Lenders like to see that you have diverse credit sources. New credit and your mix of credit each account for 10% of your credit score.

To read the full article and get more information about credit scores and other financial resources, visit CUNA’s Home & Family Finance (found on our Membership/Resources page.