RICHMOND, Va. (WWBT) - You need a good credit score to rent an apartment, buy a house and even get a car. This is why we turned to Kim Palmer, a personal finance expert with NerdWallet.
Palmer says when it comes to improving your credit score, it’s really all about making on-time payments on your account every single month.
Make sure you are never late and keep old cards you’ve already paid off.
“You also want to make sure you have some history on your account so if you have a longstanding credit card, one you’ve had for years, you don’t want to cancel that because you want that long history evident on your account,” added Palmer.
And the third important step is called credit utilization. That’s how much of your available credit are you actually using.
Palmer says you want to keep that under 30%. So, don’t max out your cards. Whatever available credit limit you have — try to use less than 30% of your credit cards each month.
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