Your credit score is similar to your adult grade point average, and you need a good score to qualify for a car loan, mortgage or even receive reasonable car insurance rates. The truth is, good credit will save you a lot of money in interest and gives you the ability to make purchases as you like. Here a few ways you can improve your score.
Pay Off Your Credit Cards
There are many ways credit cards can affect your credit score, but one of the most prominent ways to hurt your score is carrying a high balance on your cards. If the balance on any of your cards is over 30% of your limit, they are hurting your credit. For example, if you have a credit card with a limit of $100, it is ideal to not charge more than $30 on it at a time. If at all possible, you want to keep your usage around 10%.
Have Enough Revolving Accounts
There is no doubt that credit is a tricky thing to figure. Not only do you need to keep your utilization low, but your score should consist of a solid mix of different types of accounts. As an example, a few credit cards, a couple of installment accounts, student loans, a mortgage and a car loan is a great mix.
If keeping up with your score by yourself is overwhelming, some companies specialize in credit solutions nj. This way, you can be provided with professional advice to get you in the best financial position as possible.
What goes into your credit score is difficult to understand, but it is a factor that can significantly affect your quality of life. Put yourself in the best place to have control of your finances by improving your credit.