In today's credit crunch, lenders are revising their criteria for borrowers. These changes could cause an Excellent rating to now be Average; a credit score of 750 today is equivalent to a score of 700 two years ago. Here are some tips to make sure your credit score is as good as it can be.
*Get your credit report and score from one of the three major credit bureaus (Experian, Equifax and TransUnion).
*Check your credit report for mistakes. If you find an error, request a correction.
*Make all your payments on time (or early). 35% of your credit score is determined by the timeliness of your payments
*Be aware of your ratio of how much you owe vs. how much credit you have available. Ideally, you should only utilize 20% of your available credit. This accounts for 30% of your credit score.
*Keep your oldest cards active. 15% of your credit score is based on the longevity of your credit history.
The remaining 20% of your credit score is based on new credit you've acquired (10%) and what mix of credit (mortgage, auto loans & credit cards) you have (10%).
To get your credit report and score, visit www.TransUnion.com, www.Experian.com or www.Equifax.com
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