Credit Score

Check your credit report

Checking your credit report will not adversely affect your score and it will provide the information to address what improvements may be necessary. There are several online services that will assist you in obtaining your report.

Pay on time

Delinquent payments negatively impact scores.

Keep balances low

High outstanding debt, such as credit cards at their debt limit, lower scores. You should pay down the debt instead of moving it around. Having multiple accounts with smaller balances versus a single account with one large balance also can lower scores.

Use caution when opening accounts

The longer the average credit account age is on a report, then the higher the credit score will be. Therefore, having several new accounts can adversely affect credit.

Use caution when closing accounts

A closed account will show up on a credit report. Additionally, closing accounts lowers total available credit; thereby, causing all remaining balances to become a higher percentage of that total. This may lower credit scores.

Manage credit responsibly

A person with no credit cards has an unproven track record and is, therefore, considered to be a higher risk than someone who has managed credit cards responsibly.

Rate shop in a short period

Several new credit report inquiries within a short period of time are scored as comparison shopping for one new account, as opposed to multiple new accounts, and will not lower credit scores significantly.

Seek outside assistance

If overwhelmed, consider working with credit counseling service or PHOS staff. A credit counseling service can negotiate lower interest rates and assist in setting up a payment plan. Contrary to popular belief, credit counseling does not negatively affect credit scores.