Credit Scoring 101 –

Credit Scoring 101 –

Some key take-aways:

-lenders have raised the bar wanting a 720 FICO score or better vs 680 in the past

-higher FICO = better interest rate

-entitled to free credit report from each source; spread out your requests since pulling your report gets flagged on your future credit reports (

Perhaps you considered keeping a low limit, based on what you think you will spend.  Well actually you want your spending to be ~10% of your limit.  So work with your creditors to up your limit if the ratio is more than ~10% consistently.

Pay bills a few days early, a late payment is a “ding” on your credit report.

Say “no” to store credit cards – the immediate savings may offset your credit score.  Each inquiry from a credit card company about your credit will impact your score.

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