Managing Your Credit Score
If you're going to look at your credit score, it is reasonable to assume that you will try to increase your credit score. You want your credit score to be as high as possible. If you develop the right habits and behaviors, your credit score will follow. In other words, you don't necessarily need to focus on your credit score; focusing on the right activities will do the trick.
If you focus on your credit score, you will focus on behaviors that are intended only to improve your credit score. This may not be the most effective way to manage your credit. You may be able to force your score higher because of a few strategic actions. However, do you really have good credit?
How can I improve my credit score?
There are several ways to improve your credit scores. The basic, simple way (the method of choice) is to simply improve your credit. If you do that, your credit scores will follow. How do you improve your credit? Just use credit wisely and responsibly. Follow the tips found elsewhere in this book.
Your credit should have a wide and strong foundation, and you can't build this foundation by trying to fiddle with your credit score. You build a foundation by using credit wisely and responsibly over a long period of time. You only take on debt when you need it, you make your payments on time and as agreed, and you use different types of loans for different types of things.
Of course, you might benefit in the short term by fiddling with your credit score. For example, suppose that you are buying a house. This is a huge loan, and saving a little bit on your interest rate can go a long way. If you have a quick and easy way to raise your credit score, you should do it. For example, you might pay down some debts so that you are using a lower percentage of your total available credit. This will give you an important short-term boost in your credit scores, but you need to address the issue of why you were previously using so much credit.