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Tips for Maintaining Good Credit

There are many ways you can maintain a good credit score. One of the key points is to always be aware of your credit usage, credit score and your financial spending. Following these guidelines will help you maintain good credit and allow you to continue living a financially helpful lifestyle.

Control Your Spending!

This does not apply just to credit cards, but for everything you do. The temptations are always there.to overspend on that new pearl neckless or a new car, because it has options your current car doesn’t have. Be smart and money-wise. You never know when an unexpected financial emergency might happen that could change your entire financial stability.

Keep Your Credit Card Balances Low!

If you allow your credit card balances to reach their credit limit, you are telling the credit card companies that you cannot afford the financial style you are in. This is a red flag and you will get a lower rating on your credit score. According to the experts in the field, keeping your credit card balances under 35% of your credit limit is ideal for maintaining a good credit score.

Apply for a Credit Report

You can get one free every year. Google free credit reports and make sure you are selecting a reputable source that will supply you your reports from the three credit reporting agencies: Transunion, Equifax, and Experian.

Make Sure All Your Credit Cards Are Paid on Time

Don’t miss a payment. If you do, make absolutely sure it doesn’t pass the 30-day mark. Delinquency is one of the most frequent errors that consumers make which causes their credit report score to decline.

Keep Your Financial Information in a Safe Place

Identity theft a major reason why many people find out too late that there are new loans attached to their credit reports of which they are now told they are responsible to pay. There are reporting agencies who will monitor your credit reports and alert you of any unauthorized transactions.

Consolidate Your Credit Card Balances

The interest on credit cards can vary widely. One way of managing your credit card payments would be to consolidate all of them into one account. You can do this by applying for a bank loan (called a consolation load) or by applying for another credit card that will allow you to transfer all your balances to it. The key here is to make sure the interest rate for your new load/card is low or at least reasonable so that the debt consolation is worthwhile.

Look for 0% Credit Card Offers

Routinely, credit card companies offer 0% promotions; that is, they will give you 0% interest for a limited time, usually six months to one year.

This can be a lucrative deal for you, but you must be aware of two things:

  • Note the new interest that will apply after the introductory rate is over.

  • Make sure you get a card that will allow transfers of your other cards and is not just 0% for purchases.

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