The most important thing is that you pay all of your bills on time. Any missed or late payments have a negative impact on your credit score. Keep in mind that this may apply to many of your bills, not just loans and credit cards.
Using your whole credit limit may have a negative impact on your credit score. It’s better to keep balances low.
How long you’ve been using credit also matters. The longer, the better. So if you are new to credit or rebuilding credit, start building a good credit history now.
Your credit scores improve if you have different types of credit, such as auto loans, credit cards, student loans, etc.
It’s the percentage of how much you make each month that you have to pay on recurring payments, like a credit card. If it gets too high, it can negatively affect your credit score.
You can check it for free once per year at annualcreditreport.com.
When it’s time for you to borrow money, knowing your credit score will help you better understand your credit options.
1. Jorge is new to the country and gets his first credit card
2. He makes purchases and makes his payments on time
3. His credit history grows over time
4. He now qualifies for a car loan and buys a used car
5. Due to his good, long credit history, he gets a great interest rate on a new home
Follow these guidelines and use your credit responsibly, and you’ll be on the path to good credit.
For more about building and managing your credit, visit our Smarter CreditTM Center.
Get a copy of your credit report
Visit annualcreditreport.com and get started. >
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