Credit scores are used by everyone for everything today. Do not let your credit get bad. Credit can be repaired, but it is easier to keep it in good standing - if possible.

How to establish credit and have good fico scores

• Open a bank account.
  
• Have a few credit cards.
  
• Do not max credit cards.
  
• Keep balances low and all but one at $0. Try using one at a time and switch off between.
  
• Charge but make payments on time. Make ALL payments on time including utility and cell phone bills.
  
• Do not overdraw bank account.
  
• Do not let anyone borrow your credit card(s).
  
• Do not give your number out.
  
• Do not take cash advances.
  
• Remember a $10,000 credit card limit does not mean you have an extra $10,000.
  
• Join a credit watch program.
  
• Check your credit report a few times a year. Make sure there are no surprises.
  
• Do not close your oldest credit account.
  
• Be SMART

When applying for a real estate loan

• Do not apply for a new credit of any kind.
  
• Do not close credit card accounts.
  
• Do not max out credit cards.
  
• Do not consolidate your debt into 1 or 2 credit cars. This gives you a high balance on those.
  
• Stay current on existing .
  
• Use credit as normal and as explained above .

About FICO scores

A FICO score is a credit score. Credit scoring is a method of determining the likelihood that credit users will pay their bills. Mortgage lenders, utility companies, cell phone companies and even applying for a rental use this scoring from the 3 major reporting agencies. Scores are calculated using a mathematical algorithm and different points are given to each aspect of credit. Follow some of the tips above to help keep a good score.

Clark Howard

Visit http://clarkhoward.com/ for more tips on credit, how to save a buck and much more.