Here are a few more tips on managing your credit:

1. Amount you owe DIVIDED BY your available credit (30%): On our last blog, we explained how FICO determines your credit. To increase your credit score, call your credit card providers and ask for an increase in your available limit.  If you have more credit available to you, then your credit score will increase. 

However, be wise.  Control your spending.  Don’t buy what you want now, at the sacrifice of what you want most. Set personal goals to determine what is most important for you, and then develop a plan or a budget to meet those goals.  

2. Credit History (15%)/ Application History (10%)/ Credit Mix (10%): For most people, having 1-3 credit cards is sufficient to start building and increasing your credit. If you start to eliminate credit cards, try to maintain those credit cards with which you have the longest history.  You will increase your credit score with a longer credit history.  

Also, do some investigating if you start to acquire credit cards.  Make sure that your credit cards fit your needs.  If you’re a convenience credit card user (you pay things off immediately), look for credit cards with 25-day grace periods, and NO annual fees.  If you’re a credit user (you borrow money that you don’t have), look for credit cards with a low APR. Be wise about your credit card usage. 

3. Protect yourself against FRAUD: As you start to build your credit, you will begin to be solicited by major credit cards. Protect yourself against fraud by preventing these companies from sending you mail.  Call 1-888-567-8688 (1-888-5OPTOUT).  They will ask you for your home telephone number, name, and social security number.  They will then send you a form to fill out, sign, and return.  Your name will be permanently removed from the mailing lists. 

Or you can go to: www.optoutprescreen.com.  After you have filled out the form you will be immediately removed from the mailing list.  You will be removed from the mailing list for 5 years. 

Looking at a comment from our last post: personalfinance.byu.edu is a free website developed by Brigham Young University and was used to prepare the information in this blog.  This website will better prepare you to purchase your new Utah dream home. 

At 1 Utah Homes, we want you to have the opportunity to own your Utah dream home.  Let us know if we can help!