Financial Security

Follow these tips and raise your credit score. The percentage shows you the weight of certain things that affect your credit score.

• Payment history is 35% - Pay your bills on time every month. Even if you have to borrow it, pay your bills! Missing payments is an absolute killer!

• Debt level is 30% - Don’t take on any unnecessary debt. My general rule of thumb is if you can’t pay cash for it, don’t buy it. (This excludes a home, college loans, etc.)

• Length of credit history 15% - Having a longer credit history is good because it gives more information about your spending habits. Remember, it’s good to leave open the accounts that you’ve had for a long time even if you don’t use them.

• Inquiries are 10% - Do not apply for new credit unless absolutely necessary. Too many inquiries shows you are looking to take on a lot of debt or you are in financial dire straits.

• Mix of credit is 10% - Having different kinds of accounts is good because it shows you have skills managing different types of credit.