Start Consolidating debt and credit score

Consolidating debt and credit score

But there are some steps you can take now to start on the path to better credit.

If it finds some that are older than 30 days, it will count those made within a typical shopping period as just one inquiry.

“That way, you’re not polluting your credit report with a lot of balances,” he says.

Some people erroneously believe that old debt on their credit report is bad.

“Credit scores are determined by what’s in your credit report,” says Linda Sherry, director of national priorities for Consumer Action.

If you’re bad about paying your bills — or paying them on time — it damages your credit and hurts your credit score, she says.

Even if you’re sitting on a pile of savings, a drop in your score could scuttle that dream deal.

One of the biggest ingredients in a good credit score is simply month after month of plain-vanilla, on-time payments.

The smaller that percentage is, the better it is for your credit rating. To boost your score, “pay down your balances, and keep those balances low,” says Pamela Banks, senior policy counsel for Consumers Union.