What are the best credit practices to follow in 2023

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Maintaining good credit practices is essential for financial stability and access to credit, especially in 2023.

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Keep credit utilization below 30% of your available credit. This ensures you are able to pay back your balance in full.

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This means that if you have a credit limit of $10,000, you should keep your balance below $3,000.

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Pay all your bills in full and on time: Payment history makes up 35% of your FICO® score calculation.

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Always pay your bills on time and in full. Even if you can only pay the minimum, always meet your due date.

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Check your credit reports for errors: Checking your report for errors is another way to help maintain a good score.

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Limit requests for new credit: Applying for too much credit in a short period of time can hurt your credit score.

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Keep old accounts open: The length of your credit history makes up 15% of your FICO® score calculation.

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Consolidate debt: Consolidating multiple credit card balances by paying them off with a balance transfer credit card.

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