Credit scores range from 300 to 850, and the higher your score, the better. That means you want to build your score to at least the 700 to 749 range – or, what’s considered a “good” score. And once you get there, you need to continue to build and nurture your score.
If you continue your responsible financial behavior and take the right steps to nurture your score, in time, your score could reach 800-plus! And by having what’s considered an excellent score, you have access to the lowest rates and best loan terms.
3 tips to maintain and nurture your credit score:
Pay On Time – Your payment history is one of the top factors when calculating your score. Set up auto pay and reminders so that you pay each bill on time every month.
Maintain Your History – Generally, the older the length of your credit history, the better it is for your credit score. So, think twice before closing accounts because once those accounts are removed from your credit reports, they will no longer be applied in the calculation of your score.
Apply for Credit Only When Necessary –While having a mix of credit lines is good for your score, remember, if you apply for multiple lines of new credit, your score can take a hit.
If you’re renting, did you know that you can nurture your credit score by having your on time rent payments reported to the credit bureaus? Solutions like RentReporters can help you build and improve your score by reporting your payments to TransUnion.