Credit Scores seem to scare a lot of people. There are lots of factors that go into a credit score and many different things can have an affect on it. However, they are not difficult to improve or maintain. To maintain good credit standing, here are five easy and simple tips you should follow.
Know Your Credit Score
It is surprising how many people do not know their credit score. One of the best ways to make improve it is to actually know what it is. You should check your credit report at least once a year. By doing this, you can make sure that there are no big errors on your report. It is common to find errors and the faster you get them fixed, the better your score will stay.
Make Timely Payments
The best way to better your score or to maintain good credit is to pay your bills on time. Your payment history has a significant part in determining what your credit score is. Just by paying on time, you are helping your score greatly.
Don’t Max Out Your Credit
Maxing out your available credit reflects poorly on your score. Just because you have the credit to use doesn’t mean that you should. It is recommended that you try to keep your credit balances below 25% of your credit limit. The other added benefit of doing this is that you give yourself some room in case you have an emergency and need the money.
Develop a Credit History
Even if you don’t like credit cards, you should get one just so the credit bureaus can start to track your payment history. The longer your payment history is, the better your score can get. As long as you maintain it in good standing and always make your payments. You don’t have to go and spend a lot. Something as small as putting $25 on your credit card and then paying it off fully at the end of the month. This is a great and easy way to establish good credit
Keep A Good Mix Of Credit
It is looked good upon if you have different types of credit. You will have a better chance of improving your score if you have a home loan, car loan, and some credit cards. It shows that you are able to manage your debt well.