Video: Five Tips for a Healthy Credit Score

Hi. I’m Elsa M. for Quicken with five ways to maintain a healthy credit score.

Your FICO credit score is a number in the range of 300-850 that represents your ability to repay lenders. A score above 760 usually secures the best interest rate on loans. Slip under 700 by just a couple of points and your interest rate starts to jump.

These days, credit scores are not only used by lenders but by everyone from landlords to prospective employers. A bad score can keep you from getting an apartment, a mobile phone or even a job.

How do you keep your credit score in good shape?

1. First and foremost, pay your bills on time. The longer an account is open with no negative reports, the better.
2. Show you can handle debt. Keep credit card balances well below maximums. Balances of more than even 30% of the credit limit can hurt your score.
3. Don’t carry more credit cards than you need. Scores reflect total debt and total debt capacity, called credit utilization.
4. Review credit reports, periodically. TransUnion.com, Equifax.com and Experian.com post records of payments and lapses for all debt obligations.
5. If you spot an error, alert the credit bureaus immediately. They must launch an investigation and inform you of results, usually within 30 days.

Remember, a good credit score is an asset you don’t want to lose. So be vigilant.

For more information on maintaining a healthy credit score, visit Quicken.com.