(from financial coach Charlotte Stallings)
We're one week into spring and many of us are doing the annual spring cleaning, but don't forget your finances. A good place to start is reviewing your credit report and score, that's important because a recent survey revealed that 55 percent of consumers have not checked their credit in the past 12 months.
Why is it important to understand your credit history?
• Impacts ability to rent, buy, get jobs, etc.
• Credit score used for lending decisions
• The riskier you appear can cost you
What are top misconceptions about credit
• Score drops if you check credit
• Closing old accounts is good
• Paid off negative records are removed
• Doing nothing will fix it
What factors affect your credit score?
• Payment history (35%)
• Current amounts owed (30%)
• Length of credit (15%)
• New applications (10%)
• Credit mix (10%)
How can we improve our credit?
• Pay bills on time
• Keep balances low
• Only apply for credit you need
• Make sure credit report is accurate