8 best tips to build excellent credit scores

You’ve probably heard that you need excellent credit scores to qualify for the best terms on credit accounts like mortgages, personal loans and credit cards.

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Credit scores typically factor in your payment history, amount of outstanding debt, types of credit accounts, age of accounts and recent credit inquiries.

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Use credit accounts to build credit.

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Make payments on time.

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If you pay off a revolving credit account, such as a credit card or line of credit, keeping it open is better for your credit than closing it.

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8 best tips to build excellent credit scores

You’ve probably heard that you need excellent credit scores to qualify for the best terms on credit accounts like mortgages, personal loans and credit cards.

Credit scores typically factor in your payment history, amount of outstanding debt, types of credit accounts, age of accounts and recent credit inquiries.

Understand how credit scores work.

Use credit accounts to build credit.

If your credit reports have too little or no data, they can be too “thin” to generate scores. You must have credit accounts and use them responsibly.

Make payments on time.

Since your payment history is the most significant factor in your credit scores, paying your bills on time every month is critical.

If you pay off a revolving credit account, such as a credit card or line of credit, keeping it open is better for your credit than closing it.

Don’t close credit accounts.

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Finding a financial advisor doesn’t have to be hard. SmartAsset’s free quiz matches you with fiduciary financial advisors in your area or who serve your area. If you are ready to be matched with financial advisors that can help you achieve your financial goals, take the quiz now.

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