28 Things to Help Manage Your CreditMONITOR YOUR CREDIT REGULARLYMake sure you stay on top of your credit history. Be sure to check all three credit bureaus annually.KNOW YOUR CREDIT LIMITSBeing close to or maxing out your credit limits may negatively impact your credit score.KEEP BALANCES LOWKeep balances low on credit cards and other revolving accounts – this may help your credit score.DON’T OPEN TOO MANY ACCOUNTSOpening up a bunch of credit accounts you don’t need may negatively impact your credit score.MIX UP YOUR CREDITA balanced mix of types of credit (real estate, auto, credit card, etc.) may help your credit score.KNOW YOUR DEBT-TO-INCOME RATIOLenders look at the amount of debt you have compared to your monthly income – it’s good to keep that under 35%.START WITH A COLLEGE OR SECURED CREDIT CARDIf you need to establish credit, a secured credit card or a college credit card is an excellent way to start.PAY DOWN THE HIGHEST INTEREST RATES FIRSTWhen trying to pay down your existing debt, pay down your highest-interest debt first.LIVE WITHIN YOUR MEANSBy setting a budget and living within your means, you can avoid using credit to overextend yourself.BEWARE OF MOVING DEBTBe wary of moving around debt repeatedly – you need to pay the deficit down to improve your credit score.CREDIT HISTORY HAS A LONG MEMORYMake sure you stay on top of your credit history. Be sure to check all three credit bureaus annually.GOOD SCORES = GOOD RATEBetter credit scores may get you better credit interest rates.PAY MORE THAN THE MINIMUMPaying more than what is due on your credit card helps you pay down debt faster and improve your credit score.SET UP ALERTSSet up email and text alerts, as well as autopay, to help ensure that you pay your bills on time and build a positive credit history.OPEN CREDIT ONLY WHEN NEEDEDApply for and open new credit accounts only if you need them because too many may lower your credit score.DON’T BE LATEThe first missed payment has the most significant impact on a credit score, so don’t miss payments.THINK BEFORE CLOSING ACCOUNTSClosing credit card accounts may lower your available credit and could hurt your score in the short term.ALWAYS PAY ON TIMEYour payment history is one of the most significant factors in your credit score.CHECK REPORT FOR ERRORSCheck your credit report at least once a year with all three bureaus to ensure there are no errors.BE PATIENT… IT TAKES TIMEYour payment history is one of the most significant factors in your credit score.LENGTH OF YOUR HISTORY MATTERSLenders care about the length of your credit history because they want to see that you can manage credit accounts responsibly over time.CHECK YOUR CREDIT SCORE REGULARLYChecking your credit does not affect your credit score.ESTABLISH CREDIT WITH A CO-SIGNERIf you need to establish credit, applying for a loan or credit product with a co-borrower or co-signer can be an excellent way to start.BANK ONLINE REGULARLYCheck your credit card activity regularly with online banking instead of waiting for your paper statement to arrive in the mail.BE CAUTIOUS WHO YOU APPLY WITHOpening joint accounts with a spouse or partner will impact both parties’ credit files and credit scores, and both are responsible for the debt.
