MANAGING YOUR CREDIT CARDS

Your credit score takes into account the amount of credit you are using in relation to your credit limit.

Sometimes issuers will automatically lower your credit limit if your credit score has dropped.

When limits are cut and your debt doesn’t decrease your credit score could drop.

Here are some credit card management tips to help boost or maintain your credit score.

Get your credit limits raised or reduce your balance.

If you have good credit, try asking your credit card company for higher limits.

This is not to incur more debt, but to increase your available credit, and lower your ratio of debt-to-available credit.

Also, try reducing your outstanding balance. These steps can boost your credit score and help you qualify for better loan terms.

Use inactive credit card accounts

Card issuers can also close accounts that are rarely used. And having them close your account with a zero balance can spike your debt-to-ratio-available credit limit ratio.

On the other hand, keeping a zero balance for 90 days and then reusing your card(s) can help you maintain or even boost your credit scores.

Try using your cards once a quarter, even if you pay the debt off when you get the bill.

Review your credit report.

Since your credit score is based on your credit report, any reported delinquency will lower your score.

Credit report errors can happen, so you should check your credit report at all three major credit reporting agencies.

Call us with any questions about your credit score ad how impacts your mortgage options. We are here to consult with you every step of the way!

You are entitled to a free copy from each of the three credit bureaus once a year.

Go to www.AnnualCreditReport.com

And rotate your agency credit report request every four months.

RoseMarie Zúñiga

Your Marketing Manager