10 TIPS FOR BETTER CREDIT

Did you know that one late payment has the potential to drop your credit score up to 100 points? Or that 35% of your credit is determined on how you make your payments? One way to protect our credit profile from the adverse effects of a missed payment is putting your bills on autopay. Make sure you have enough money in your bank account to cover each bill every month to avoid an overdraft.

The first step is to reduce high-interest credit card debt, since the interest is higher than that of an auto loan or student loan. Lowering your credit card balances shows lenders you're dependable with credit. Experts recommend keeping below 30% of your credit limit.

The longer your history of healthy credit, the better your profile could be. Closing your accounts lowers the average age of your credit history. So even if you no longer use an old credit card, it's often best to keep the account open, unless the credit card comes with a high annual fee.

When you apply for new credit, whether it's a card or loan, the lender makes a "hard inquiry" on your credit report. This may lead to a dip in your score. So apply only for the credit you need. This will prevent multiple inquiries cluttering your credit file.

You're already lowering your existing balances; now minimize ongoing debt by paying off your new charges each month. This keeps your credit utilization low, which is one of the best ways to strengthen credit. You'll also avoid acquiring interest charges.

Mistakes happen! Review your credit profile yearly to ensure that everything reported is accurate. When you monitor your credit, you can quickly address factors that influence your score, such as late payments or too many hard inquiries. Check your credit report for free, through your credit card issuer or bank, or via www.annualcreditreport.com.

A password manager is the best place to start. These can create and store unique passwords so you don't have to remember them! Also, avoid making financial transactions on public Wi-Fi networks, and report lost or stolen credit cards, identify theft, or any suspicious activity, as soon as it's detected.

The best way to keep your spending in check is to make a budget. This helps you break down necessary expenditures and understand how much is left over. You can then make wiser choices when you're tempted to use your credit card.

You may have seen ads that claim to be able to remove negative information from your credit report - for a fee. Don't fall for it! No company can legally erase information from your file if it's accurate. Avoid spending money on so-called credit repair and take steps to improve your credit profile instead.

The common retail payment option to “Pay in four interest-free installments” is known as Buy Now, Pay Later. While it may seem harmless, it can negatively impact a mortgage application.