Ways to Maintain Good Credit
You’ve been doing all the right things and playing it straight and safe with your credit cards — never taking on more debt than you can afford, paying the bills on time, and keeping tabs on your credit score, and so on – now you’ve found yourself with better credit than you thought. Here are tips on how you can keep that fabulous credit.
Continue Timely Payments! Payments made on time and of full balance or at least more than the minimum on a monthly basis are significant to maintain a good credit history. Organization of bills in one place, automated loan payments and giving particular attention to the amount due dates are ways to ensure that excellent credit.
Do Not Over-Extend Yourself. As tempting as it may be to avail all the low-interest rate opportunities and department store specialties that may come your way with a proper standing credit, resist! The fewer debt and open accounts – loans or credit cards – the better.
Have a Backup Plan. An emergency fund with a minimum 10-15% of available credit as a safety cushion for dire times is always maintained good credit idea.
Check Your Credit Report. Be vigilant about your credit report. See any inaccuracy or errors or anything that isn’t supposed to be there, act immediately! The sooner you spot the mistakes, the sooner you’ll be able to correct them.
Keeping in Touch With Creditors. If you’re falling short on payments or are unable to make them in a timely fashion, inform your creditors. Given good credit history, most creditors are willing to set up alternative payment options, especially if you bring them up to speed right away!
Only Apply For Credit That You Need. If you apply for credit, a lot of it in a short period it will reflect negatively on creditors and lenders.
Stay Out of Bankruptcy if You Can. Foreclosures, arrests, and bankruptcy are all a BIG NO. They will ruin your credit history. Avoiding these at all costs is necessary!
Be consistent! If possible, stay with the same employer and in the same residence for a more extended period. People who tend to move places and switch jobs regularly are more likely to default on their credit. It reflects negatively and shows instability which you’re trying to stay far from!
Focus on What You Want. While all manner of things may be extremely tempting especially with a proper standing credit, your credit history becomes vital when considering those big purchases – like a house or a car. One percent of a difference in interest can cost you or save you thousands on loan.
Hang on to Your Habits. A pat on the back and a regular reminder that however many options you may have before you your habits are what got your great credit in the first place is what is necessary for you! Make a few credit-related changes, sure, but make them slowly and with caution. Responsibility is critical to maintaining proper credit.