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Manage Your Credit Score for a Positive Impact on Your Financial Life

CHICAGO, March 21, 2012 – Understanding your credit score can be complicated, but when managed, can work to your advantage. A good credit score has a major impact on your financial life. March is national Credit Education Month and the experts BMO Harris Bank want to help you understand and improve your credit.

"A good credit score is important in many aspects of your life," said Mike Lewis, Regional President, BMO Harris Bank. "It can make the difference in receiving approval for a mortgage, car loan eligibility and credit card interest rates. A good credit score can lead to better rates and less interest paid over time."

In honor of Credit Education Month, Lewis offers a few tips to manage and improve your credit.

• Check your credit report. This should be done at least 60 days or 90 days before applying for a loan in order to make sure that the report is correct. If it's incorrect, make sure to notify a credit agency before you apply for a loan.
• Pay your bills on time. Wh en a bill is paid late, or is even 30 days past due, it can show up on your credit report for up to seven years.
• Manage credit responsibly. Less is more. By cancelling credit accounts and getting new ones, you cause a negative impact on your credit score. It can take months even years to repair.
• Avoid going over the credit limit. Some credit card companies allow you to do this as a courtesy, but it can negatively reflect on your ability to handle your account.
• Use credit when needed. If you never use credit of any kind, it doesn't mean that you'll have a great credit history. Most lenders prefer to see at least three to four accounts reflecting a satisfactory 24-month payment history.
• Avoid "shopping for credit." Each time you apply for a loan or credit card, an inquiry from that lender will be reflected on your credit report. Inquiries can affect your credit score.
• Add an installment loan to the mix. You'll get the fastest improvement in your scores if you show you're responsible with both major kinds of credit: revolving (credit cards) and installment (personal loans, auto, mortgages and student loans).
• Use your cards lightly. Racking up big balances can hurt your scores, regardless of whether you pay your bills in full each month. You often can increase your score by limiting your charges to 30 percent or less of a card's limit; 10 percent is even better.
• Consider limiting your credit. Applying for a new account, transferring balances, or concentrating all of your credit-card balances onto a single card can result in a lower credit score.

Managing your credit score does not have to become a source of anxiety or stress. Take advantage of this Credit Education Month to learn more about your credit score and ways to improve. A clean credit report and good score can help you with futur e loans and interest rates. For more information on improving your credit visit your local BMO Harris branch.

About BMO Harris Bank N.A.
Based in Chicago, BMO Harris Bank N.A. provides a broad range of personal banking products and solutions through over 650 branches and approximately 1,350 ATMs in Illinois, Wisconsin, Indiana, Kansas, Missouri, Minnesota, Nevada, Arizona and Florida. BMO Harris Bank's commercial banking team provides a combination of sector expertise, local knowledge and mid-market focus throughout the U.S. Deposit and loan products and services provided by BMO Harris Bank N.A. Member FDIC. BMO Harris BankSM is a trade name used by BMO Harris Bank N.A. BMO Harris Bank is part of BMO Financial Group, a North American financial organization with 1,600 branches, and a retail deposit base of approximately $180 billion.

BMO Harris Bank is a trade name used by BMO Harris Bank N.A. Banking deposit and loan products and services are provided by BMO Harris Bank N.A. Member FDIC. Brokerage products are offered through Harris Investor Services, Inc. (HIS), a registered broker/dealer, member FINRA/SIPC, and SEC-registered investment advisor. Insurance products are offered through Harris Bancorp Insurance Services, Inc. (HBIS). Investment banking services are provided by BMO Capital Markets Corp. (BMOCMC) and BMO Capital Markets GKST, Inc. (GKST), a Municipal Bond Dealer and member FINRA and SIPC. Financial planning and investment advisory services are provided by Sullivan, Bruyette, Speros & Blayney, Inc. (Harris SBSB), an SEC registered investment advisor. Family Office Services are provided by Harris myCFO, Inc. Investment advisory services are offered by Harris myCFO Investment Advisory Services LLC (Harris myCFO), an SEC-registered investment advisor and wholly-owned subsidiary of Harris myCFO, Inc. Stoker Ostler Wealth Advisors (Stoker Ostler) is an SEC-registered investment advisor. Investment advisory services to institutional clients are provided by Harris Investment Management (HIM) or its wholly-owned subsidiary HIM Monegy (Monegy), SEC-registered investment advisors. Products offered by HIS, HBIS, BMOCM, Harris SBSB, Harris myCFO, Stoker Ostler, HIM, and Monegy, which are affiliated companies and wholly owned subsidiaries of BMO Financial Corp.,: Are not insured by the FDIC or any Federal Government Agency, not a deposit of or guaranteed by any Bank or Bank Affiliate, may lose value. The purchase of insurance or an annuity is not a condition to any bank loan or service. Not all products and services are offered in every state and/or location.