Credit scores are more important than ever

Credit scores have been important to borrowers and lenders alike for a long time. In the current economy, an argument can be made that these numbers are more important than ever.

With lenders tightening up their standards, only potential borrowers with the highest credit scores – and thus the lowest amount of risk – are finding success in this tough economy. That said, here are some quick tips dealing with credit scores:

• Absolutely do not miss any payments. Do what you can to make sure that all payments are made on time. Even one missed payment can be a huge blow to your credit score.
• Pay particular attention to your available credit lines and how much (in a percentage) of these lines are being accessed regularly. Experts often recommend staying within the 30 – 40% range possible.
• Think twice before closing an account, especially an old account. Length of credit history can be a factor in your credit score.

Recommended reading: Managing your credit score requires action