Surprising tips to raise your credit score

Here are powerful tips to raise your credit score

 We recently read an article on MSN.com that outlined tips to increase your credit score.  As you all know, we believe that knowledge is power, and that is why we live by our motto:  “Knowledge is Key.” 

In the article, “Credit score tips that don’t make sense,” http://money.msn.com/credit-rating/article.aspx?post=f6a9da26-d789-40a5-b178-e16ce186ac82, we noticed that Stacy Johnson commented on an article by Jason Steele.  In summary, Jason said the following:

1. Your scores improve when you have lots of loans;
2. More credit cards can mean better scores;
3. You need to pay your credit card balance every day;
4. Don’t cancel your credit cards; and,
5. Shop fast when it comes to mortgage loans.

 We decided to run this article by our resident credit expert, Sarah Kahley-Rufo with A+ Credit Consulting.  We have found Sarah to have an incredible depth and breadth of knowledge.  Here is what Sarah had to say about the article:

 The article is very informative and mostly true.   

Your scores improve when you have a lot of credit:

Yes, you need to have a variety of credit.  This means that you should not focus on one type of credit, (revolving or installment).  This does not mean you need to have a lot of credit.  In fact, if you have too much credit, it could lower your scores. Just make sure to have one or two types of each.

 Don’t cancel a credit card:

I highly recommend not cancelling credit cards, especially if it is a card you have had open for many years. If you feel the need not to use the card, just put it away in a safe deposit box.  I have seen scores drop 80+ points just by cancelling a long-held credit card.  If you absolutely need to close a card, pick one that you have NOT had open for very long – and, most certainly do not close it right before you are trying to get an auto or home loan.  You do so at your credit score’s peril. It will hurt you.

 Please let me know if you have any questions or concerns about any of this information. I am here to help you and your clients.