| Having a good credit score (also known as a FICO | | | | outstanding balance |
| score) during an economic downturn gives a person a | | | | If you can't pay off your credit card balances in full |
| huge advantage over someone with a poor FICO | | | | each month, try not to let your outstanding balance |
| score. Typically, when the economy turns sour, there | | | | ever exceed more than 1/3 of your total limit. Carrying |
| are bargains to be had, particularly in the real estate | | | | more than 1/3 of your available line for more than a |
| market , that are only available to people with large | | | | couple months is a red flag that will hurt your FICO |
| amounts of cash on hand (not likely), or people with | | | | score. |
| good credit who can borrow and make bargain | | | | 4. Get rid of all but 2 credit cards |
| basement real estate investments. Applying for loans | | | | Having too many credit cards does not look good to |
| and other unsecured lines of credit credit just makes | | | | the reporting agencies and they will lower your score |
| life a lot easier for you in a bad economy. So what | | | | because of it. If you have 5 or more credit cards, but |
| can you do right now to improve your FICO score? | | | | only use 2, your FICO score will take a hit. With the |
| Here's what the experts have to say on the topic... | | | | nearly universal acceptance of both Mastercard and |
| 1. Check your credit report for errors | | | | Visa, these are really the only 2 cards you need to |
| Believe it or not, the 3 major FICO reporting agencies | | | | carry. |
| do make mistakes. In fact, finding some sort of | | | | 5. Don't miss or be late on payments |
| mistake on your report is almost the norm rather than | | | | Paying late or missing a payment altogether can do |
| the exception. If you find what you feel is an error on | | | | significant damage to your FICO score. For example, |
| your report, bring it to the attention of the reporting | | | | making a late mortgage payment or missing a |
| agencies. They have a legal obligation to investigate | | | | mortgage payment altogether is the single worst thing |
| and correct any errors within 30 days of you bringing it | | | | you can do to damage your FICO score. It is a huge |
| to their attention. | | | | "red flag" to the reporting agencies simply because |
| 2. Pay off credit card balances every month | | | | they know that having a roof over one's head is pretty |
| If you are able, you should always try to pay off your | | | | much considered a necessity and an individual who |
| credit card balances in full every month. Paying just the | | | | cannot pay for that "roof" must be in a very poor |
| minimum balance is how the card company makes its | | | | financial situation. |
| money. And with some cards charging from 15% to | | | | There is no reason you should be embarrassed about |
| 20% interest on unpaid balances, your card company | | | | having a low credit score and wanting to learn how to |
| is making a bundle off of your outstanding balance. | | | | repair it. Click one of the links below to get the |
| Paying off card balances in full also shows both a | | | | information you need to learn the tips and tricks credit |
| willingness and an ability to pay, which enhances your | | | | repair experts use everyday to improve the credit |
| FICO score. | | | | scores of their clients.. . |
| 3. Don't carry more than 1/3 of your credit limit as an | | | | |