The goal was to pay off your house, be debt free and pay cash for everything. If you decide to finance a new car or a second home, your interest rate will be based on your credit score.

A good rule is to keep your credit card balances below 20%. However, if you prefer to charge all your purchases on a credit card to earn points, it is OK to have a higher balance but make sure your balance is lower prior to applying for new financing. You can contact your credit card company to get the date of when they report to the credit bureaus.

A good strategy to avoid maxing out credit card, is you spread out your purchases across several credit cards. This minimizes the risk of a credit card company closing one of your cards because of a lack of activity which can lower your credit score.

While the perfect mix of credit would include having one or two installment loans, don’t worry if the only debt you have are credit cards. Use all of them on a regular basis and make your payments on time. This will help you maintain a good credit score and allow you to finance that future second home or car with a good interest rate.

You may obtain a Credit Score Audit, a $97 value, totally FREE. Use the button below to schedule a good time for yo

[sg_popup id=”3783″ event=”inherit”][/sg_popup]