Coming back to an oldie but a goodie...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/. You wouldn't believe the amount of people that I have given credit reports to and they don't know what a debt is. It is very important to know what you are working with.
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. This is one of the things you CAN NOT change on a credit report. The only thing that will fix this issue is time.
6. Do not cancel your credit cards as a way to improve your FICO score. It may actually cause your score to drop. This is another thing that is irreversable. Once you have your credit card paid off, just cut the card up. You don't HAVE to use it, but if you cut off that line of credit, you are shooting yourself in the foot. On the other hand, DON'T go and open a ton of credit cards!
7. Keep your mortgage shopping under a 2-week period, so your FICO score will not be negatively affected. Everyone says that if you have a lot of inquiries on your credit report, that your score will go down. This is true...if you are opening up a lot of different lines of credit. If you are shopping around for a loan, you should be fine.
8. Keep a partner with a low FICO score out of the mortgage.This will ensure that you are able to get a better interest rate, which will save you a lot of money over time.
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.
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