If you’ve read our previous blogs, you’ll understand what it takes to build your credit score up. In this particular blog, we are going to talk about how to “maintain” a good credit score. In order to maintain a good credit score, you must first understand the factors that can affect your score. Your credit score is more than just a 3-digit number. It is the barrier between you and the amount of trust banks have in you. When you have a strong credit score (about 700 or higher), banks are more likely to lend a helping hand when you need it. A credit score is manipulated by many factors such as debt, payment history, etc. If you can manage these factors that affect your credit, you can maintain a healthy credit score.
Tip #1 : “Minimum payments don’t exits”
We understand that you aren’t required to pay the entire balance upon due date, but understand that when you make a minimal payment towards your balance, you’re basically showing the bank that you weren’t ready to take on the loan that they gave you. It’s almost as if you can’t really afford the loan you were given. So be sure to pay the full amount (whenever possible) so that you don’t give the banks any reason to think that they can’t trust you.
Tip #2 : “Avoid high balances on your credit cards”
When you own a credit, the banks are basically handing over their trust to you. They are expecting you to use this card with a certain level of responsibility. Which means you should not exceed a certain amount of expenditure on that card. Typically the safe zone is to not spend more than 30% of your allotted credit limit. This will prove responsibility to the bank that lent you the money.
Tip #3: “Pay bills on time”
We’ve reiterated this over and over and cannot stress enough how important it is to make sure you bills are paid on time. Better yet, we advise you pay ahead of time for more safety. Banks like to have their money when they expect to have it. Delaying payment of your bills, for any reason, will result in a break of trust between you and the bank. Make sure to consistently pay your bills when or before they are due to avoid any damage to your credit score.
We hope you found some valuable information in this blog. If you did, don’t neglect to share it with a friend. See ya next time!