Costa Mesa's Neighborhood Blog

A blog about Newport and Costa Mesa with an emphasis on Costa Mesa Real Estate and Newport Beach Real Estate, written by a lifetime local resident of coastal Orange County whose knowledge of the area, combined with a strong background in mortgages, real estate and being an attorney, gives her clients many advantages.

One Quick and Easy Way to Help Your Credit Score

One Quick and Easy Way to Help Your Credit Score

 

There are many things you can do to increase your credit score and to harm it.

 

But, there is one simple way to help your credit score, and it's counterintuitive to many.

 

Many people decide to cancel credit cards after paying them off thinking that it is a good thing.

 

 

The problem is that the score models look at the amount of debt you have compared to your available credit balance. 

 

For instance if you have $5,000 in debt and $20,000 in available credit, your debt ratio is considered low.  However, if you have $5,000 in debt and only $6,000 in available credit, you have a high debt ratio.  So if you canceled three credit cards, you might show a higher debt ratio and thereby lower your credit score.

So, what should you do?  Don't cancel your credit cards unless you know that you will be unable to avoid the tempation of using them if you don't. 

Instead, use the credit cards a couple of times per year to purchae necessities such as food or gas, and then pay them off.  If you like, you could write a check (or set up an online payment) immediately after using the card.  This shows credit worthiness and prevents incurring finance charges.

 

If you would like additional tips for helping your credit, please give me a call at 714-319-9751.

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About the author: Christine Donovan is a California Residential Real Estate Broker with experience in assisting clients buy and sell residential real estate.

Are you upside down in your home? Is it worth less than you owe? Are you concerned about making your mortgage payment? For more information see Options to Foreclosures, understanding short sales or contact me at christine@donovanblatt.com to discuss your options.

If you want to buy a home or to list your property for sale, please click Newport Beach homes, Costa Mesa homes, Huntington Beach homes or Orange County homes.  Click the link if you are interested in buying a home at a courthouse auction sale.

Contact me at christine@donovanblatt.com or 714-319-9751 to learn about her system which will make your buying and selling experience easier.

Disclaimer: All information in this blog is deemed reliable but is subject to change at any time and is not guaranteed to be accurate nor are there any warantees either express or implied. This blog is not intended to offer any legal, tax or other advice.

Click Orange County homes for sale to view all OC homes for sale.

Comment balloon 14 commentsChristine Donovan • January 10 2011 09:54PM
One Quick and Easy Way to Help Your Credit Score
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