CNN Money recently ran an article that Alabama Consumers should carefully consider. The title of the article is “6 Ways to Kill Your Credit Score.” It gives some great advice on six important areas where consumers can either hurt or help their credit scores. Below is a summary of this list:
1. Don’t let your balances on your credit cards exceed 30% of your credit limit.
2. Pay your bills on time. (One expert estimated that late payments of 30 days can result in up to a 60 point drop in your credit score)
3. Having only one or two credit accounts can hurt your score.
4. Creditors like older accounts. So avoid opening a lot of accounts at any given time.
5. Don’t close out accounts when you transfer a balance.
6. Review your credit report at least yearly to make sure there are no errors on there that can hurt your score. (If you find errors, visit our website to read an article on correcting errors on your credit report)
The article goes into greater detail about things that can affect your credit score and gives more advice on things to do to boost your score. To read more on the CNN Money article click here.
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