Your credit score is important in many ways. It allows you to purchase a home, buy a car, and can even be a factor in getting the best insurance rates.
However, credit scores can be confusing too. Here are 3 ways to help protect your score.
1. Order an updated credit report each year for you and your spouse. Many people don’t realize that there may be mistakes on their credit report that lowers their score! In fact, a recent study showed that 79% of credit reports contain some kind of error! Go to HTTP://WWW.ANNUALCREDITREPORT.COM to request a free copy annually from each of the three major credit bureaus.
2. Avoid excessive credit inquiries. Only run your credit report when you are ready to apply for credit and make a purchase. Consistent and ongoing inquiries can lower your score because the bureaus assume that you will be taking on more debt.
3. Long history counts! The best scores have many years of positive credit history. That’s why it’s a good idea to keep your unused accounts open rather than closing them. They continue to show positive long-term history and help your score even if you’re not using those credit cards on a regular basis.
Obviously, you also want to make sure that you pay all of your bills on time. By keeping your long term accounts open, avoiding excessive inquiries, and checking your report annually for any mistakes, you’ll set yourself up for the best credit score possible. And with a great credit score, you’ll save thousands of dollars in interest on large long term purchases and in insurance premiums!
At Fox Insurance Agency, we can work with you to make sure you’ve got the coverage you need, while at the same time using all possible credits and discounts to make that coverage affordable. For all your auto insurance, homeowners insurance, or other insurance needs just give the experts at Fox Insurance Agency in Beaverton, OR a call at 503-277-2300 or visit our insurance website 24/7 for great rates. We want to help you meet your goals, and make sure what’s important to you is protected!