A Spin on Spending - Building Credit

Thursday, July 18 at 09:00 AM
Category: Arvest News


One of the first steps to building a good credit history is to know where you stand. Before you head to the dealership or hire a real estate agent, request a credit report, and take the necessary steps in improving your score. One way to do this is by making your loan payments on time. According to myfico.com, your credit payment history can make up 35 percent of your FICO credit score. The longer your loan payments are paid on time, the better your score can become.

It’s important to remember to keep your credit card balances low. Many of the credit bureaus’ scoring systems evaluate the amount of debt a person carries compared to their credit limits. If the amount owed is close to the limit, it’s likely to have a negative effect on your score. Maintaining high credit card balances can hurt you, even if your bills are paid on time each month.

Although it’s generally considered a plus to have established credit accounts, too many credit card accounts may have negative effects on your credit score. You should only open new accounts as needed.  When opening a new line of credit, don’t just jump at the first appealing offer – compare interest rates and fees beforehand.

 

Tags: A Spin on Spending, Arvest
There are no comments associated with this entry.

Post a Comment



  • Website Address:

Choose one or more categories to subscribe to:

Cancel