Protecting A Good Credit Score

Credit is hard these days. You may be drooling over a new car or perhaps home. You may want a student or personal loan. In all these instances, you will need to have a good credit score. It aids you in establishing your credit-worthiness. With a good credit score to boot, you have easy access to loans and practically any form of financing, of course at the best rates. Heed these tips to have or maintain a good credit score.

You must always have a low credit card balance. If you have a low credit balance, then it will help you make a good credit risk. Never go beyond 30% of your credit limit. Always see to it that you keep a balance between used credit and available credit. The higher your balance goes, the more damaging it can be to your credit score.

Additionally, paying your bills on time is key. Credit experts claim that approximately 35% of your credit score is in accordance with your payment history. By always paying the bills promptly, whether it be credit cards or utility bills, you get too boost your credit score. Late payments cause massive impacts on your credit score, in a negative way. It can only reduce you possibilities with regard to getting loans and any form of credit.

Furthermore, you should not co-sign a loan.Co-signing for loans is a wrong move. If you’re looking to help a family member or a dear friend in getting a loan, your kindness will be detrimental to your credit score. Given that you agreed on co-signing, if the other person’s payments are always delayed, you credit-worthiness will take a blow. Always be cautious about this, most especially when there is no guarantee that the person you are co-signing for will pay on time.

Keep all of your accounts active. Majority of lenders will like it if you have a verifiable credit history. Nevertheless, do not ever try practicing transferring your balances from a credit card to another. This will cut massive points from your score.

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