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diggdugg

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why isn't my credit perfect?
I have 20 years of credit history. never a single missed payment. about 12 closed accounts, two open accounts (mortgage and credit card. zero balance on my card.)

current mortgage is 6 months old.

I use my card every month and pay it off.

do I really need to carry a balance and pay interest to increase my score!? that seems like extortion.

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No No NO!

NO!  You Do Not Have to Carry a balance.  Let me repeat that NO! You Do Not Have to carry a balance.  Never Carry a balance on your Credit Cards.  Pay your credit card balance in full each much.

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Yes, you must carry a balance to increase your score.  The lenders like to see you actually using credit & carrying over balances because they get a better idea of what type of credit client you are.  I always keep 1-3% balance on at least one credit card at all times.   Also, as you continue to pay your mortgage, your score will increase as well, but it takes a bit longer.  Another way to increase your score is to carry other types of credit, such as an installment account or auto loan.  Best of luck!

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