A higher credit score can mean lower costs for your home mortgage, auto insurance, and homeowner’s insurance. To send your score soaring:
Pay debts on time. Most of all, pay your current mortgage and insurance premiums on time.
Keep credit line balances low. Balances above 50 percent of the amount of the credit limit will negatively impact your credit score. Also, you can improve your credit score by re-structuring your debt. Spread your debts around so all balances are under the 50 percent threshold.
Vary your debt. A person with student loans, an auto loan and a credit card account may have a better score than a person carrying three credit card accounts with similar balances.
Stop applying for credit. The more applications you make in a short period of time the more it hurts your credit score because that’s a sign you may be borrowing beyond your means. Ideally, you’ll stop trying to obtain additional credit at least a year before you apply for a major loan.
