Tips on Credit

I got these tips from Suze Orman. Love this book, Young, Fabulous and Broke. If you don't already own it, I suggest getting it.

1. Check your credit reports at least once a year to make sure there are no mistakes that could make your FICO score lower. You can get one free from each credit bureau at http://www.annualcreditreport.com/.

2. File a fraud alert with a credit bureau if you think you are a victim of ID theft.

3. Complete an ID fraud affidavit if your account has been stolen or "borrowed" by a financial criminal.

4. You can also check your FICO score on http://www.myfico.com/. If your score is below 760, there are things you can do to change it over time.

5. Pay your bills on time, even if it is just the minimum, to keep your FICO score strong.

6. Do not cancel your credit cards as a way to improve your FICO score. It may actually cause your score to drop.

7. Keep your mortgage shopping under a 2-week period, so your FICO score will not be negatively affected.

8. Keep a partner with a low FICO score out of the mortgage. If you are buying a home with a life partner or spouse, and one of you has a low FICO score, the partner with the higher score should apploy for the mortgage alone. That way, you will get a lower interest rate.

9. Pass down your FICO score to your kids. One of the best ways to educate your children on smart financial management is to send them off to college with a great FICO score and an appreciation of why that's a very big deal. Add a child to your card and they will inherit your credit profile.