Monday, December 03, 2007

Kiplinger's Three Rules for Great Credit Scores

This guest post is from Kiplinger's:

"The December issue of Kiplinger’s Personal Finance offers three simple rules to improve your score:

1. Pay bills on time. Your payment history makes up more than one-third of your score.

2. Keep the balance on your credit cards below 25% of your available credit. In FICO’s model, your actual credit limit isn’t as important as your credit utilization ratio—the percentage of your limit that you’ve actually used.

3. Limit applications for new credit. Each time you apply for new credit—especially if you have a short credit history or few accounts—an inquiry is made on your credit report. Inquiries themselves are tiny dings—but a lot of dings can add up to a big dent.

The article in its entirety is available at"



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Anonymous said...

That's very nice, but sometimes people get sick and can't work and lose their income and their credit goes in the tank.

How do you get your credit out of the tank?

Frugal Duchess said...

Good point!
I will write a post with practical answers and tips on the issues that you have raised.

I might even call the folks at and ask for suggestions.

Thanks so much for writing.
Thanks for raising a very real issue.
Take Care & Best Wishes,