Credit score in the most crucial three-digit number in your life. This score is derived from information stored on your credit report. Your credit report has all the details of your financial behavior since you were born; it is like your health record in a doctor’s office. Unfortunately, many people neglect their credit reports or don’t bother when there is a low score or mistake on it. Some are not aware that they can improve their scores by doing some simple things. These tips will help you if you are working to maintain or improve your current credit score.
Pay On Time
The simplest way to keep your good credit score great or improve a poor one is to pay all your bills on time. So, yes, this also means checking your bills often instead of hiding them under the pillow for later review. Keep the amount that you owe on the card to as minimum as possible. Remember that credit score is inversely proportional to the amount of debt you owe. If you have been charged an annual fee that you cannot afford to pay anymore, find a solution to pay if off and don’t use that card in the future.
Keep Your Oldest Card Open
Often times, your history says it all. Credit card companies and potential lenders want to know how long you have been in the credit card game. The older the card and you are in good financial standing, the better. Closing your older credit card accounts can actually hurt your score as it will shorten the length of your credit history.
Don’t apply For New Credit Cards Unnecessarily
As mentioned earlier, creditors get nervous when you owe money to them and more nervous when they see you applying for a bunch of new credit cards and loans. It is not a good idea to apply for new cards just to avail bonus offers, especially if your credit score is not that good.
Note that credit cards and credit scores let you take an important step toward achieving financial success and you don’t want to ruin the whole thing. Your ability to access things you may want in life depends on this score. So stay on it and follow the tips above. Make sure your credit reports are accurate and that you are taking every possible advice from advisers to maximize it into a good credit score.