More Ways to Keep Your Credit Report Clean

Paying your bills on time is the obvious route to good credit, but here are some lesser-known do’s and don’ts to keep your credit unblemished.

* Don’t have your mail delivered to a post office box, unless you’re worried about mail theft. Some lenders see the use of a P.O. box as an attempt to hide your whereabouts.

“Historically, people who use them don’t want to be found,” said Maxine Sweet, vice president of consumer education for Experian, a consumer credit reporting company.

* Don’t change addresses too often. “This can be a risk factor if your credit record is otherwise marginal,” Sweet said. “This could indicate a lack of stability.”

* Do refinance your home if you’re giving it to a spouse as part of a divorce settlement. Simply signing a quitclaim deed does nothing to remove your obligation to pay the

mortgage. Ten years from now, a late payment by your ex-spouse will go on your credit record if you don’t refinance.

* Do ask car dealers if they’re going to run a credit check on you before they let you test-drive a car. Many do, as they want to know that you can afford that BMW before they spend too much time with you. But each inquiry may lower your credit score.

Sally Taylor-Shoff, business manager for Fair, Isaac Co., which summarizes credit reports for mortgage lenders, says the company’s models “do a pretty good job” at weeding out these extra inquiries, as long as they’re clustered chronologically close together.

* Don’t apply for a lot of mortgages or continually chase the best credit card rates, opening and closing accounts with abandon. Again, excessive credit inquiries and constant shifting of accounts raises a red flag with lenders. Incidentally, asking for your own report does not affect your credit rating.

* Don’t borrow money from a private commercial lender if you can qualify for a loan from a bank or credit union. Credit scoring models assume that people who borrow from private companies are higher risks.