Credit scores are no joke. Having a good-high credit score is an absolute must for those seeking reasonable interest rates for loans, mortgages, cars, and other investments. The lower your interest rates are, the more money you have for yourself, and in the current state of our economy, there is no room for low credit.
Here are three things you need to know about credit scores.
- Having credit cards and paying them in a timely manner can help build your credit score, but canceling cards after establishing credit on them can actually hurt your score. If you have a credit card that you want to get rid of, but has been a large part of your credit, cutting it up and not using it is the best way to go. Cancelling it will affect your score negatively.
- If you’re looking to open a credit card, avoid applying for too many at a time. This looks irresponsible and makes you seem like you’re in desperate financial need, which is a red flag to those looking at your score.
- Though giving a teenager a credit card sounds like a really bad idea, it is actually recommended to start building their credit earlier. However, don’t forget to post payments on time, otherwise this could be very detrimental to their future credit.
Learn more about credit score management from the experts at Valley Federal Credit Union in Harlingen, Brownsville and across the Valley. Call our offices today at (956) 546-3108.