The Magic Number....620+!!

What does this mean?

This is the credit rating that you should have in order to get AAA rates with lenders. How to achieve this? Here are a few pointers;

First of all, you should get familiar with your own credit score. Equifax is one company that keeps track of  your score. This should be checked regularly...every 6-9 months.

You should have at least 2 active trade lines in good standing (meaning no late payments or at least not later than 2 months on making a payment also known as an R2 rating). A trade line is a credit card, line of credit or a loan where you are establishing your credibility at repaying money in a timely and consistent manner.

Don't be afraid to have credit, it is not a bad thing! Even if you prefer to deal with cash, you should establish some type of credit history. Take out a credit card with a small limit and use it once a month for a gas purchase or something to that affect and pay it off immediately at the end of the month.

Lenders don't like you to have multiple cards of the same type so mix it up; Visa, Master Card, AMEX. Don't carry all Visa (for example) or all department store type cards, they like variety.

Most lenders don't like to see clients get MAXED out on their credit line. They don't want you living at the "edge" of your margins...so we strongly advise that people stay under the 75% mark on the available credit limits. An example of this would be; your available limit is $1000, do not spend over $750 as a monthly balance.

Be consistent in repaying. Always repay at least the minimum payment every month, even if it is just $15. It is recommended that people set up an automatic payment system with their banks so they can stay consistent and they never forget to pay at least the minimum balance. Note: minimum is usually 3% of the overall balance on your statement.

If your credit limit is up to the max, it is recommended paying it down ASAP. Doing this would increase your score immediately and / or call up the credit card company (the number is on the back of the card) and ask for an increased limit AS WELL as a decrease in interest charged. Note: most credit cards have a 19 - 21% monthly interest calculation. You have the right to ask for it to be reduced. Don't hold back!