I can’t stress enough how much your credit score can be beneficial to you. Good credit score makes it easier for you to get a loan, mortgage, job, insurance policies and an apartment among other things. Lenders always look at your credit score to determine how much money they can offer you. To maintain a good score you have to be stable financially.
Below are some tips to help you maintain your credits score
Always pay all your bills on time. The most common cause of low credit score is late or unpaid payments. Paying off your bills, credits and loans will lead to a perfect score. If you don’t make the payments on time, your lender will expose you to your credit bureau that will automatically lower the points on your credit score. Think about this, every time you make the late payments your credit score reduces. This can ruin your chances of getting more loans or credits in the future. Ensure you pay the bills and loans before the deadline to maintain your score.
Keeping low balances is another way to maintain good scores. In some ways, high credit balances make your credit limits lower. Lenders wont trust you with huge sums of money if you already have unpaid debts. Balances that are higher than the limit have a very high chance of ruining your credit score. Ensure your balances are not more than 30% of your limit. If the billing happens to close before you clear the loan, your lender will add the report to your credo score.
Checking on your credit report regularly may sound cliché and tiresome, but It helps a lot when it comes to maintaining your credit score. When you pay all your bills and loans on time, you don’t see the need of checking up on your progress. The thing is technical issues like inaccurate, incomplete or incorrect information may lead to a bad history and a poor credit score. Checking up on your score regularly will help you keep in touch with the history and dispute any errors that may arise to keep the high score constant.
Paying off your impending debts will reduce the chances of a low credit score. When paid late, credits and loan balances will lower your core drastically. Too many loans can also influence your credit card report negatively. Taking too many debts can cost you your points and may influence other lenders decision to approve any kind of loans. Low debts are easier to maintain and pay off and make it easier to retain your credit scores.
Don’t apply for too many credit cards at the same time. Paying of credit card debts is hard when you have other commitments to your income. Multiple credit cards make it super difficult to arrange the monthly payments, which may cause some misinterpretation and missed payments. Ensure you have cleared all the past payments before making a new request on a credit card.