"I FOUND OUT THE HARD WAY HOW IMPORTANT MY CREDIT SCORE WAS"

When a writer couldn't finance a new phone, she realized how much a low credit score was affecting her life.

- LAMBETH HOCHWALD

A series of low-paying jobs left Ann Marshall struggling with credit card debt a few years ago. “I remember not being approved to finance a $900 phone from Best Buy,” says the longtime writer. “In an ideal world, you apply for credit and get approved. I wasn’t.”

It took changing careers to one that paid better and seven months of working 60- and 70-hour weeks to pay off her debt. Now, Ann boasts an excellent credit score above 800.

Ann isn’t the only person who has faced a dip in her credit score, which is an indication of how trustworthy you are to receive a loan. Almost 20% of Americans have a credit score below 580, which is considered “poor.” A “fair” score ranges from 580 to 669 and a “good” score ranges from 670 to 739.

A healthy credit score is key to everything from renting an apartment to securing a car loan. So how do you make sure your credit score stays in the best possible shape? Elizabeth Pennington, CFP, a certified financial planner at investment advisor firm Fearless Finance, says taking the steps at right can bump up your score.

KEEP AN ACTIVE CREDIT ACCOUNT