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How to Maintain Your Credit Score?

The first tip is to use your cards, but use them lightly. You want to have an active financial life to keep up your history of on time payments, but you don’t want to be hitting anywhere near your limit. The amount of credit that you charge, versus the amount that is available to you, is a factor in calculating your rating. So, if you don’t build up debt, and you use under thirty percent of your limit every month, then you’re going to keep that ratio down which is great for maintaining your credit score.

Do not constantly open new, and close old, accounts. This is because another factor that determines your rating is the age of your history. When you have older accounts that are still active, this helps age your history and boost your rating. If you were to close that account and it aged off your report, that would shorten the length of your history. Also, when you open new accounts, your rating takes a slight temporary dip-if you do this regularly, though, that dip becomes your new normal.

Never, ever, pay anything late. Missing payments is a black mark on your report and it takes a long time to age off. You just want to avoid having this happen at all costs.

Keeping a budget is a tip that people often don’t think about, but is essential to maintaining your credit score. When you have a budget, you know exactly what is coming out each month, what you need to pay, how much you are making versus how much is going out, and you are overall aware of where you stand financially. Without a budget, you are just guessing that you will have the money to pay things each month, and that’s never a good thing. That leads to missed payments, and black marks on your report.

Looking at your credit report regularly is the only way to make sure you are aware of your rating and facing your situation head on. If you aren’t checking your report, you won’t know if any mistakes have been made or where you stand on your report. You can get a free copy of your report once a year online, and this is the absolute minimum for how often you should be checking that, so make sure you do.

Following these tips for maintaining your credit score should keep you out of financial trouble and keep your rating at a positive place for years. Over time, using healthy practices, your rating will not only be maintained but can rise a bit from just keeping up these great tips.