Credit cards are a tool. Like any tool, it’s important to use credit cards wisely. Here are a few important credit card tips to help you use it as best as possible:
- To optimize your credit score, never close a credit card account. FICO credit scoring company says closing a credit card will never help your score, and will usually hurt it.
- Keep any credit card balance low, to optimize your credit score (and make it easier to manage). A maxed out credit card, even if it’s not over-the-limit, will hurt your credit score (and can make it very difficult to repay that debt).
- Know that 65% of your credit score is tied to just two factors — how timely you have paid in the past, and how much you owe. So paying on-time and knocking down any credit card debt will help you optimize your score.
CCOA’s certified credit experts have been helping people with budgeting, credit and debt issues for 30 years. For a free appointment, call 479-521-8877 or visit www.CCOAcares.com
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