Ingredients for Good Credit

NOV 22, 2011

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Do you plan to wrap up tomorrows feast with a nice, rich wedge of pumpkin pie? Many of us will –  its the classic, traditional conclusion to a Thanksgiving feast, and it makes the whole dining experience just that much better.

A good credit score is a lot like a slice of delicious pumpkin pie in two very important ways. First, a good credit score can make your financial life a little (or a lot) sweeter. And to make a good credit score, you need just the right balance of quality ingredients.

Fortunately, cooking up a good credit score is as easy as baking a pie as long as you follow the recipe. In the spirit of the holiday season, heres a tried-and-true recipe for serving yourself a slice of good (or at least better) credit:


1 bill payment history

1 record of total debt

Several years of credit history (the longer, the better)

Credit cards (the unmaxed variety)

Mortgage (optional)

Auto loan (also optional)


1. Take all your monthly bills, put them in a pile and pay them on time every month. Helpful hint setting up auto pay can help ensure you never miss a payment due date.

2. Mix together a variety of credit types, including credit cards, auto loans and mortgages. (Remember, to get the most benefit out of these ingredients, its important that they all be current.)

3. Pay down debt, especially revolving debt like credit cards. This will ensure your credit score batter has a healthy ratio of credit available to credit used.

4. Avoid adding too many new ingredients to the mix. Dont open too many new accounts   in a short period, because too many inquiries can negatively impact your credit score.

5. Blend all ingredients carefully and keep a close watch on your credit. Take advantage of both your annual free credit report and monitoring services to ensure your credit stays in good shape