The higher your credit score, the better, when it comes to applying for mortgages, loans & credit cards.
Lenders use credit scores to judge whether you are a good credit risk. A higher credit score improves your chances of qualifying for credit and can result in a better interest rate and credit terms.
Credit scores are computed using the details available on your credit reports. For instance, credit scores typically consider your payment history, the amount owed, and the periodicity of your credit history.
Improving upon the information that flows into your credit reports can improve your credit scores over a period of time.
It is best to pay your bills and loans on time. In case there are late payments on your credit reports, start by paying off your bills & loans on time. Reminders on your personal calendar, as well as email / text reminder from your creditor / bill paying service will help greatly.
Keep your credit card balance well below your credit limit. If the balance is too close to the credit limit, you may be considered a poor credit risk and receive a lower credit score.
Do not close old credit card accounts right before applying for a loan. If you plan to apply for a loan in the near future, you may want to hold off on closing old credit card accounts until after receipt of the loan.
Desist for applying for more credit cards than you actually need. This may have a negative impact on your credit score.
Please make sure that you contact the credit reporting agencies to report any mistakes you find on your report, and have them corrected.