Maintaining a good credit score is essential in today’s day and age. If you intend to buy a house, purchase a car, or apply for any type of loan, you will need to have an acceptable credit score to accomplish these goals. Most rentals and even some employment companies will check your credit history to make sure you are a good candidate for their requirements. The good news is that credit is dynamic, so even if you have a few bad marks, it’s not too late to correct the path you are on. Here are some tips on how to protect and improve your credit scores.
Credit Tip 1- Pay all of your bills on time. The most important thing to remember about keeping your credit score high is to always pay your bills on time. It helps to set up automatic bank withdraws so the bill amount will be automatically withdrawn and sent directly to the companies on the day the bill is due. To avoid overdraft fees, make sure to always have enough money in your bank account to cover the charges. Keep a note on when each withdraw is set to come out, and if you need to, ask the company to switch the billing/withdraw date to a day that you get paid.
Credit Tip 2- Pay down your debt. An easy way to jack up your credit score is to pay down your credit card and loan debt. Try to make more than the monthly minimum payment in order to pay off your balances quicker. A good rule of thumb is to not spend more than 30% of your credit limit on your credit cards. You can pay them down quickly and credit bureaus will look more favorably on your debt than if you were to max out all of your cards and only make minimum payments.
Credit Tip 3- Use prepaid credit cards to control overspending. Signing up for a prepaid credit card is an excellent way to prevent yourself from acquiring too much debt. Many of these prepaid credit card companies are now even offering reward benefits and interest payments just as real credit cards and bank accounts will offer.
If you have had poor credit in the past, it’s not too late to fix what you have done. Use these three credit tips for a few months, then check your credit reports to see how you are doing. You will be pleasantly surprised to see how quickly your scores can change for the better if you act responsibly to protect and improve your credit scores.