A good credit score can help you secure loans at low-interest rates, insurance policies at competitive premiums, and top credit cards, among other things. If you’ve worked hard to build a good credit score, it’s important to continue making the right financial moves so your credit score doesn’t take a beating. Here are a few tips to help you maintain your credit score.
Don’t Skip Your Payments
Skipping your monthly payments can have a huge impact on your credit score, given that your payment history accounts for 35 percent of your credit score. If you find it difficult to keep track of your bills, you may want to automate your payments.
Keep Old Credit Cards Open
The average length of your credit accounts affects your credit score as well. So, if you have old credit cards that you don’t utilize anymore, don’t be in a rush to close these accounts. Keeping old accounts open could do you far more good.
Don’t Increase Your Credit Utilization
Aim to keep your credit utilization at 30 percent or lower, so it doesn’t impact your credit score negatively. Utilizing a high amount of your available limit could bring down your credit score.
Lookout For Errors On Your Credit Report
Your credit score is determined by the data in your credit reports. So, make sure to request credit agencies for a copy of your credit report and review it from time-to-time. If you spot any inaccuracies that could be bringing your score down, make sure to dispute it immediately and get it corrected.
Avoid Applying For New Credit Accounts
While it may seem tempting to open a new credit card when you come across an interesting offer, remember that the creditor will perform a hard inquiry into your credit history, which will lower your score. So, only apply for credit cards and loans if you really need them.
If you do happen to run into financial troubles due to which you aren’t able to pay your credit card bills, make sure to contact your creditor immediately. Most times, creditors will be sympathetic, especially if you’ve been a good customer, and offer you alternative payment solutions or lower your interest rate.