A high credit score is always a good goal, but in this difficult economy, credit is increasingly difficult—and expensive—to come by. However, those with the highest credit scores get the best rates on loans and credit cards. Here are some tips for improving any credit score:

• Get current on your bills and stay there. Late payments or debts assigned to collection agencies can have a substantial negative impact on your credit score. (Hint: online bill pay can reduce the risk of forgetting or losing a bill.)
• Keep your credit card debt under 1/3 of available credit. And don’t open new cards to increase your credit, as suddenly having lots of available credit can make you look like a risk.
• Don’t close out old cards. Length of credit history is a significant portion of your score, so if you have a good history with a card, keep it!
• If you need to build or rebuild your credit history, consider starting with a secured credit card. These cards are“secured” by a savings account that you establish, but unlike a debit card, the money isn’t taken from the account. You carry a balance and make payments, just like with a regular credit card. And because lenders for these cards report to credit agencies, secured cards are perfect for establishing or repairing credit history.
• Don’t assume that a low credit score is forever. For more help with credit scores or other money-management issues, contact BALANCE—a free, confidential counseling service open to all GHCU members. You can reach BALANCE through our homepage at ghcu.org.

Filed under: Financial News and You, Money management tips by Shannon