Improving credit during tough economic times a challenge

Chris Hutchens mortgage banker explained, “What the public needs to know is their credit score is becoming a big, a huge barometer of their overall financial well being. The consumer needs to take care of their credit score like they take care of their health.”

The problem is few people know their score.

Financial services representative Adam Herendeen says he has the solution. “There needs to be more education with people with their credit scores, with how they handle their finances, so they don’t get into these predicaments.”

Chris Hutchens says the best way to maintain good credit is to get a high credit limit, spend less than thirty percent of your limit, and pay it back on time. He explained, “If you have a $5,000 credit limit, and you owe $4,900 on it, you’re going to look like you’re maxed out. If you have a $5,000 limit and you owe $500 or $1,000, you’re going to look like you’re managing your debt very well, you’re going to score way higher than if you have a low debt to your limits.”

And if possible, only request a credit report a couple times a year.

Given our economic state, Herendeen predicts he’ll see far more identity theft cases during this holiday shopping season than in years past saying “It’s an awful thing to do, but desperate times, desperate measures.”

You can check your credit for free once a year at annualcreditreport.com. Good credit is considered a score of 700 or higher. Having a score below 600 could likely cause some problems when trying to get a loan.