The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Information on this website may not be current. This website may contain links to other third-party websites. Such links are only for the convenience of the reader, user or browser; we do not recommend or endorse the contents of any third-party sites. Readers of this website should contact their attorney, accountant or credit counselor to obtain advice with respect to their particular situation. No reader, user, or browser of this site should act or not act on the basis of information on this site. Always seek personal legal, financial or credit advice for your relevant jurisdiction. Only your individual attorney or advisor can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, contributors, contributing firms, or their respective employers.
Credit.com receives compensation for the financial products and services advertised on this site if our users apply for and sign up for any of them. Compensation is not a factor in the substantive evaluation of any product.
Credit scores are simply a numerical “snapshot” of our credit habits and financial background. If you make positive changes to your credit habits, they can have a positive impact on your credit score. That, of course, will lead to more access to money when you need it, lower interest loans, lower down payment requirements, and more! Use the acronym LUCKY to help you adopt remember what some of the best credit habits are:
L = Look at your credit reports regularly. At least twice a year, pull your credit reports at AnnualCreditReport.com and go through them with a fine-toothed comb. Make sure that the information reported is accurate, up-to-date and complete. You can get a free credit score by pulling your free Credit Report Card, which will also give you grades for each major credit scoring component.
U = Uncover errors and dispute them. As you review your reports, you may find information listed on the report that is incorrect or doesn’t even belong to you. Dispute these errors with the credit reporting agencies. It is in your best interest to have the most accurate information — only about you! — listed on the report.
[Credit Score Tool: Get your free credit score and report card from Credit.com]
K = Keep your accounts active but paid off. One of the best ways to positively impact your credit habits (and, by extension, your credit score) is to keep all of your accounts active by using them at least once a month, but never spending more with your accounts than what you can afford to pay off. So pull out that credit card regularly but make sure you pay it off in full and on time each month.
Y = Years matter! They say that “time heals all wounds” and that is true on credit reports. Your credit scores should slowly increase over time as a result of your better credit habits. Sometimes you might see improvements in just weeks or months, though for some negative items it may take a few years before the effects fade from your score. The most important thing is to start today and maintain good habits, and those months and years will only help.
To get a better idea of how your good credit behavior affects your score over time, it helps to monitor your score regularly to help you chart your progress and keep you on track. Sort of like the rainbow to your pot of gold, since better credit can get you better interest rates and ultimately save you a pile of cash.
[Free Resource: Check your credit score and report card for free with Credit.com]
Image: iStockphoto
March 7, 2023
Credit Score
January 4, 2021
Credit Score
September 29, 2020
Credit Score