Yes, life happens! If your credit score has seen better days, it can hurt you when borrowing money. Maybe you get turned down or must pay high-interest rates.
How credit reporting bureaus calculate credit score is a little complex. In this short video, we share some things you should know if you are trying to improve your score.
- It’s not good to have no credit cards or cancel all of your cards.
- Conversely, don’t open credit accounts you don’t need.
- If you have credit cards, keep the balance at less than 50% of the available balance (30% is even better).
- Closing an account doesn’t make it go away, as it can still appear on your credit report.
- If you’re behind on any accounts, get current, and pay on time as long as it is possible.
- If you have an account that goes to collections, that will stay with you. In ...