Crystal Schip

Even if your credit is already solid, it pays to keep improving. A higher score (especially above 760) can give you more options — and better rates — when applying for a mortgage. Here are some tips to help you improve:

1. Keep track of where you stand. Review your credit report regularly to make sure it’s accurate, and to look for areas where you can improve. Order yours free at annualcreditreport.com.
2. Always pay bills on time. It may seem obvious, but a history of consistent on-time payments is one of the biggest factors in building a good score.
3. Keep balances low. How much credit you have available is another important scoring factor, so keep balances as far below your credit limit as possible. Keeping your balances below 30% of your total available credit may improve your credit score.
4. Keep unused accounts open. Open accounts with no balances mean you have more available credit, so it can help your score to keep them open even if you don’t plan to use them.
5. Be careful about opening new accounts. If you need a new credit account and can comfortably manage the additional payments, great. But avoid anything that might strain your budget.

Source: Wells Fargo