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2 Secrets Only the Credit Pros Know

Psst. Listen, closely: we’re sharing two new tricks that every finance expert knows for keeping your credit score high while consolidating and seeking credit. Because credit education creates value for everyone! So read on to avoid unfair drops in your credit score and improve the plan for your financial future.

Consolidate With Care

If you have more than one credit card, you may be tempted to consolidate your debt to a single card with the lowest interest rate. But beware as this could make you “jump” in your percentage of credit utilization on a single card, which will lower your score. That’s also a good reason not to close or cancel your old credit card…

Maximize Your Credit Window

We’ll tell you the bad news first: every time you apply for a credit increase or another credit card, each of the major credit agencies in the US receives a notification and…your credit score goes down. Credit experts insist it’s not much of a drop—it’s one of numerous factors and activities that can influence your credit positively or negatively. But it’s nothing compared with the drop from carrying a huge balance or missing a monthly payment.

Now, the good news: every time you apply for credit within a 30-day period will count as part of the same credit inquiry! So go ahead and seek new credit resources or higher limits within those 30 days, especially if you are in the market for a major purchase. Remember: your credit score is more about overall behavior, not a single good or bad action. Keep these tips in mind to help maintain a positive financial reputation.