Ways to Keep Your Credit Score in Great Shape
You need to keep your credit score high if you want the most opportunities. The perfect credit score is 850, but that isn’t very easy to achieve. The closer you get to it, though, the likelier that you will be able to harness whatever borrowing power you wish. That’s how you can get a house, car, loan, or whatever else you need or want.
There are lots of things that an individual can do to keep their credit score high, so let’s go over a few of them right now.
Pay Your Bills on Time, Every Time
This is the first thing to do if you want to maintain a high credit score. When you don’t pay your bills, if you take long enough to settle the account, a collections agency will be notified. You’ll have to deal with that hassle, and your credit score will take a hit.
Don’t Let Credit Card Balances Get Too High
If you are carrying a hefty credit card balance in relation to your credit limit, then your credit score will drop. That’s because if you are carrying high credit card debt that you are not paying down, it is an indication to banks and credit unions that you are overextending yourself.
Check Your Credit Report Regularly
You can use different sites to check on your credit report every few weeks to make sure that there is nothing unusual happening. An error can lead to your credit score dropping. Identity theft and credit card fraud will also spell trouble for you in this area.
Pay Off Loans Expediently
There are different types of loans you could get if you find that you don’t have ready cash, and you are stuck with unexpected medical bills or other expenses. You can get bad credit loans, but remember that these are high-interest loans, and they should only be taken out in emergencies. They’re faster than loans from traditional banks, which is nice. When you take a loan out, though, pay it back quickly if you don’t want to damage your credit score.
Don’t Cancel Your Old Credit Cards
Even if you have a credit card that you no longer use, don’t cancel it. When you close out a credit card, the issuer no longer sends regular updates to credit bureaus. That shortens your average credit age, and your score will drop.
Your credit score is not just influenced by credit cards. Things like lines of credit and loan balances change your debt level, and that can cost you points off your credit score. With less debt, it is easier to keep your score high.
Don’t Apply for Too Much New Credit
Whenever you apply for a loan or more credit cards, it hurts your score, and you do not want to spend beyond your means. Just because you are getting lots of offers in the mail to apply for new cards, it does not mean that you have to do so.
Maintaining good credit is not as complicated as it may seem. If you spend within your means and stick to a strict budget, then it is a simple matter to keep your score elevated.