Your credit score is the key that unlocks your future financial milestones. Things like a mortgage, a car loan, or even that trip you’ve been meaning to take are all possible with a higher credit score.
Today, I’m going to show you five simple ways for boosting your credit and keeping your score where you want it.
5 Simple Ways to Keep Your Credit Score High
Your credit score is constantly in flux. This can be a good or bad thing, but if you follow these practices, you can keep it on the higher end.
1. Keep Your Balances Down
A combination of wealth management, and smart spending can ensure that your credit cards don’t get maxed out. It’s easier said than done, but keeping your balances under 30% of the total line of credit is the ideal place to be.
This will show that you have revolving credit, without overspending and maxing out the card.
2. Repair Your Credit
Credit repair is a valid and very effective means of getting inaccurate, unfair, or unsubstantiated items removed from your credit report. You only need to use it until the incorrect items have been removed.
A great options for this is Lexington Law. Check out this link for a full review of the services they offer: http://www.debtsteps.com/lexington-law
3. Don’t Close Old Cards
While it may be tempting or logical to pay off cards and then immediately close them, resist the urge. Having older debt on your report is a great way to build credit and show your ability to manage debt over a long-term period of time.
4. Pay On Time
Late payments account for the most loss in points on your credit score. Avoid this by always paying early or on time. Take advantage of automated payment setups with your creditors if need be.
5. Shop Around Quickly Before Applying
FICO allows you to make multiple inquiries for student loans, mortgages, and car loans within a 30-day period. Doing all of your rate shopping in this time period will ensure you don’t lose any points on your score from multiple inquiries.
Final Thoughts
How do you keep your credit score high and where you want it to be? Which of these tips are your favorite? Let us know in the comments!
