Having good credit is important if you care about borrowing money now or in the future. You could be borrowing this money for many reasons: buying a car, a house or even getting a home improvement loan. Keeping a good credit score stable isn’t actually all that complicated, despite what companies broadcasting on your local radio station might want you to believe.
Having poor credit can really hurt you, so keep these handy tips in mind when thinking about your credit. They just might help you obtain and keep that all elusive perfect score.
If you have credit cards, whether out of necessity or purely as a method to raise your score, try your best to get the best Low interest credit cards available to you. By best, I mean that you should look for credit card deals that offer you true low-interest credit cards. Having a good credit score can help you get these, along with lower interest rates on all of your loans, including your home.
One way to raise or maintain an already excellent score is to do your research. Know how score is calculated and use that information to your advantage. For example, not everything will impact your score, though most financial events in your life will. Some things that influence your score include payment history, the amount of debt you have and how long of a credit history you have.
Make sure to remain diligent when it comes to paying your bills, even the little ones that you may think are fine to let slide every now and then. Not paying your bills on time and allowing yourself to fall behind can have a negative effect on your score.
Many people aren’t aware of this, but the amount you have charged to your credit cards is important. Just because you have a credit card, doesn’t mean you should max it out. In fact, you shouldn’t, even if you have one of the best credit cards available. You will want to have no more than one-third of the max charged on each credit card.
It’s a good idea to keep old accounts open, even once they are paid off. Closing an account will eventually get it taken off of your report, which will wind up shortening your credit history, lowering your score.
Limiting the frequency with which you apply for new credit is a smart way to maintain your good credit. It’s only a small percentage of your score, but you lose credit points every time you get a new line of credit, whether it’s a loan or a credit card. Get new credit only when it’s absolutely needed and you should be just fine.
Raising and maintaining a good credit score doesn’t have to be as complicated as some people make it out to be. Pay all of your bills on time and use credit sparingly. Follow the rules and eventually, with patience, you’ll have your perfect credit you’ve always desired.