How to earn A+ Credit...

1. Always pay your bills on time, even if you can only pay the minimum payment. Late payments on credit accounts lower your score. The most important account to keep current is your mortgage or rent payment.

2. Establish credit. Open and use responsibly 4-6 credit accounts. Do not carry a balance of more than 1/2 your credit limit on any credit card. Buy something with installments (car, appliances, etc.) but keep your payments low.

3. Avoid allowing your total monthly credit payments (credit cards, car loans, school loans, etc.) to equal more than 10% of your monthly income. For example, if you earn $2500 per month, your monthly credit payments should not exceed $250 per month.

4. Avoid allowing your credit to be reviewed unnecessarily. Each time your credit is checked, your score is lowered 10 points for a 6 month period. Giving out your Social Security Number potentially allows your credit to be evaluated.

If your Credit looks ugly…

1. Many times, creditors will remove late payments from your report if you ask! Call each of the companies reporting late payments, explain why your bills fell behind, and assure them that the account will remain current from now on. Ask for a letter verifying that the late payments have been removed from your report.

2. Consider losing the car…or the stereo equipment, or the boat. Large installment loans like these can max out your borrowing capacity. Selling these high payment items will allow you more buying room for your home. It is about prioritizing.

3. If you have any outstanding accounts that have gone to collections, pay them immediately and request a letter confirming that the account has been paid. Unpaid collections hurt your credit!

4. If you have more than 6 open credit card accounts, close some of them. If some of your credit cards are at their maximum balance, pay the balance down to 1/2 or less of your maximum limit or transfer part of the balance to another card.