Your credit score is one of the most important numbers to your financial picture. If you pay your bills on time and
keep your debt down, your credit score will be fine – or will it? Unfortunately, there are some small details and
mistakes that can add up to negatively affect your credit.
Too many inquiries
Beware that every time you apply for a new loan or even just check on what type of interest rate you can get, your
credit will be reviewed. It’s best to avoid too many credit inquiries because a high number will bring your credit
score down. Always ask if a lender is pulling a hard inquiry to check your score; otherwise, you may have a downward
fluctuation.
Incorrect information
It’s a good idea to check your credit report periodically for mistakes. Incorrect information can bring your score
down without you realizing. While it’s not an instant process to correct info on your report, it’s worth it for the
positive impact it can have on your score. Addressing these issues as soon as possible is key to keeping your credit
healthy.
Not enough credit usage
While using your credit too much is a problem, so is not using it enough. Your score will increase and stay high with
regular, responsible credit use. Pay your bills on time and avoid hitting your credit limit, and you’ll be in better
shape to keep a good score.
Knowing how to maintain a good credit score will help you in many walks of life beyond real estate. However, if
you’re applying for a mortgage, your credit score takes center stage. Keep these tips in mind if you’re planning to
buy a home.
