Stay away from retail/store credit cards. Not only do they have high interest rates, but they are also viewed by the credit bureaus as less favorable than regular credit cards, such as Visa and Mastercard.
Try not to carry a balance of over 35-45% of your total available credit. You also want to try and keep a balance not under 25% on your card.
Use your emergency card every now and then. If you have a card tucked in a drawer somewhere for emergencies only, you may want to put a tank of gas on it every other month. If you’re not using a card, it’s not helping your credit as much as it could be.
Don’t pay all your cards in full every month. If you pay all your cards in full every month, the creditors are not making any money off you, and will not report you to the credit bureaus as you deserve, because they just show a $0 revolving balance every month.
Pay your bills on time. A late fee will occur after an hour of being late, however, if you have no choice but to be late, the creditors will not report you as negative to the credit bureaus until you are over thirty (30) days late. So if you have to pay late, try not to exceed thirty (30) days.
Don’t close a card just because you don’t use it anymore. Your credit score favors lengthy credit history. So if you have had a card a few years and just don’t use it anymore, you may want to keep it open just to show you have a solid history of credit. Additionally, closing out a card decreases your overall available credit, and hurts your debt to available credit ratio, which the bureaus look strongly at.
Don’t have too many credit cards. Available credit alone does not help you. Having too much can hurt you. Additionally, having too many credit cards can hurt you. If you can’t close your wallet completely because of all your credit cards, you may want to cut back a little.
Don’t constantly apply for credit. Anytime you apply for credit your credit score takes a minor hit because an inquiry is created rather or not you get approved. So only apply for what you need.
Try not to co-sign any loans. Any loan you co-sign goes on your credit report as if it was your own debt. Therefore, it takes away any available credit as well as could show negative on your credit report if the original signer defaults at all.
For more information see our Credit/Debt Negotiation information, Credit FAQ, or Contact Us for a free consultation.