How to Maintain a Good Credit Score

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A lot of people don’t realize that maintaining a good credit score isn’t easy and requires constant effort. It is easy to lose your good credit score but tremendously difficult to get it back to where it was. So, it is important that you always take care of your credit score and don’t let it drop down at any time.

With the help of the below-mentioned steps, you can maintain your good credit score and don’t have to worry about a bad credit score at all!

Learn more about the Credit Score

One of the most important steps is to learn more about what makes the credit score so that you are able to maintain it better. A credit score is made up of five important pieces of information which include your payment history, level of debt, credit age, a mix of credit and recent credits taken by you. You need to learn what affects your credit score and what doesn’t. Once you have an idea what makes your credit score, you will be able to protect it better.

Keep paying your bills on time

One of the best ways to maintain a good credit score is by paying all your bills on time. This means that you need to not only pay off your loans and credit card balances but you also need to pay your other bills like electricity, water, phone bills, etc. on time. Don’t even miss out on paying a parking ticket on time.

Maintain a low Credit Card balance

Another great way to maintain a good credit score is by ensuring that your credit card balance is within the 30 percent of your credit limit. If it is anymore, then your credit score would suffer. Don’t risk this even if you plan to pay off your credit card bills in the next billing cycle itself. Always maintain a 30 percent rule, if you have a credit limit of $10000 then keep your credit card balance to $3000.

Don’t close old Credit Accounts

Don’t make the mistake of closing other credit accounts as this could seriously dip your credit score. If you close your other accounts, the credit history from these accounts won’t matter anymore and it won’t be added to your credit report. This will reduce your average credit age and will result in your credit score dropping down.

Apply for new Credits carefully

Although credit inquiries just take 10% of your credit score, repeated credit inquiries could really hurt your credit score. So, avoid applying for any new credits or loans in a short duration of time.

Keep an eye on your Credit Report

Make sure that you get your credit report regularly in a year and check for any inaccurate information. If you find something, then get it removed from your credit report by disputing it. Keep a check on your credit report and ensure that all information is correct and you can also use it to improve the credit areas where you are lacking behind.

Credit Report

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