Which action is least important to maintaining a healthy credit score?

The short answer is know your exact credit score.

The long answer is there are many factors and actions that can affect your credit score but knowing your exact credit score does little in helping you maintain a healthy score.  A credit score is a number which evaluates how credit worthy a person is based upon their credit history.  Lenders use this score to determine how safe or trustworthy a person is.  The higher the credit score the more trustworthy they are considered.

There are many credit scores out there but FICO is the most commonly used. The best way to maintain a healthy credit score is to have a long history of paying your bills on time and try to keep the amount of money you owe (debt) low.  The total amount of money you owe on accounts, which type of credit line(s) you have open and how many new credit account(s) you opened are also taken into account.

A general range of FICO credit score and their overall rating is below:

  • Excellent: 800 to 850
  • Very Good: 740 to 799
  • Good: 670 to 739
  • Fair: 580 to 669
  • Poor: 300 to 579

People often ask how to improve their credit score and the answer is not a straightforward one, but there are some things you can do to help it. For starters, pay your bills on time, try to get your credit limit increased on your credit cards, and keep your oldest line of credit open.  A healthy credit score can save or cost you money over time but just remember which action is least important to maintaining a healthy credit score and go from there.

Useful Links

Credit Reports and Scores

FREE Credit Report – Authorized by Federal Law

The Fair Credit Reporting Act (FCRA)