If all of your credit cards are charged up to the limit, your credit score will take a hit. You’re doing well if you owe no more than 30% of the limit on credit cards. Here are a few tips to help you keep a good credit score:
· Do have a few accounts open, but not too many; lenders want to see that you’re financially responsible;
· Catch up on missed payments (they will still show up on the credit report);
· A large number of accounts with balances may indicate a higher risk of over-extension;
· If you owe some money don’t rush to pay it off. Make monthly payments ON TIME to show financial responsibility;
· If you owe more than 30% of your limit, bring those balances down before you shop for a house;
· Don’t close all your accounts; you must have some credit and a good, established credit history.
A good credit score can help you obtain a lower interest rate on your mortgage!