Thursday, March 8, 2012

how to: have a good credit score

My Victoria's Secret credit card asked if I want to sign up for unlimited access to my credit scores for $16/month. I didn't do it because 1) that's not in my budget and 2) my husband and father-in-law told me checking your credit score lowers it. That didn't seem right to me so I looked it up. Here are some facts about your credit score that you may not know that I found here and here. I think that these are important to know regardless of if you're going to apply for credit in the near future.

1. Credit scores do not measure your income or financial savvy. They measure the likelihood you'll default on your loans and that takes into account more than you'd think.

2. Using only one credit card hurts your credit. It will help if you have more than just a gas card; try for a Visa, Mastercard or AmEx.

3. Closing accounts hurts your credit.

4. Getting close to your credit limit, even if you pay them off in full and never pay interest, hurts your credit. 30% of your limit is good, 10% is even better.

5. Checking your credit DOES NOT hurt your credit score. It is very important to keep up-to-date with your score and make sure it truly reflects your actions. HOWEVER, if you ask someone like an auto loan employee to look up your credit that will hurt your score.

6. Having high credit limits will not hurt your score. Reaching your limits will.

7. You do not need to carry a credit card balance to have a good score. It won't help, it will just make you pay interest unnecessarily.

8. Applying for credit will lower your score, but not by a lot.

9. There are many different companies that calculate a credit score for you and different lenders will look into different ones. If you want to look at the score that most of your lenders will be looking at then look at a FICO score and one that is tweaked for what you want (auto loan, mortgage, etc.).

Hope this is as helpful to you as it was to me :)


  1. This is one of the main reasons why I keep visiting this blog. I learn so many things on how to do many things just like how to have a good credit score. This post will help a lot of people who are struggling in their credit score.

    1. thank you so much. that meant a lot :) i will try to post more often!