How to Maintain Good Credit!

Understanding a credit report is the easy part, the more difficult part is how you can get and maintain a good credit rating. Here are some of our tips to maintain the score you’ve worked hard to get.

Tip #1 Bill Payment

The best way to keep your credit in good standing is by being consistent. By consistently paying bills on time you show creditors that you are a responsible borrower. If you are unable to pay bills on time, contact your creditor immediately and explain your situation. Work out a payment plan that is acceptable to both of you.

Tip #2 Keep at least one credit card open

By keeping at least one credit card open you maintain a longer credit history. A long credit history is great because it shows creditors that you are established and have good payment history.

Tip #3 Pay debts Quickly!

Always make sure to pay at least the minimum on all credit cards and loans. If you are able to pay more than the minimum go for it! Only paying the minimum means small debts can be stretched out over a long period of time. By paying more than the minimum you are able to pay debts off faster and avoid heft interest fees.

Tip #4 Keep balances Low

Avoid whenever possible racking up large balances on your credit cards and maxing out cards. Don’t let your credit debt exceed more than 20% of your total yearly income.

While seemingly daunting, maintaining a good credit score really comes down to these four steps. Follow them closely and it will help keep your credit in good standings.

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