Here’s everything you need to do to ensure maintaining a good credit

A credit line helps you fund major purchases by making smaller payments over time. These major purchases include buying a house, a car, or financing your education. To qualify for such a service, agencies and banks evaluate a person’s fiscal wellbeing by measuring their credit score. 

A credit score depends on several factors such as employment status, payment history, and debt-income ratio. A good credit score will enable you to qualify for more loans with a minimum interest rate.

We have compiled the top 5 Do’s and Don’ts of maintaining a good credit score. This will help you take benefit of better credit and loan programs with lower fees and favorable terms. 

Do Verify Statements

If you notice any errors, you must get them corrected as soon as possible. This is because payment history accounts for 35% of your credit score. 

Do Keep Credit Utilization Ratio in Check

Therefore, it is in your best interest to keep the ratio well below 30%. If possible, you should clear out any outstanding payments. This will improve your credit score quickly. 

Do Not Try to Spread Out Payments

A better alternative is to opt for a Balance Transfer Card. This card works by consolidating all your payments into one single card. Thus, ensuring that you never miss a payment and your credit score remains high.  

Do Not Close Old Credit Accounts

Therefore, keeping an old credit account open will positively impact your score by keeping your credit to debt ratio high.

maintaining a good credit report

Do Not Ignore Credit Score Report

If your score is lower than your expectations, you can review your statements for any errors. Fixing them on time will save you from facing denial of credit line in the future. 

A good credit repair company such as Credit Repair Today will offer you a free credit score report, comprehensive plans, and a money-back guarantee. You can use their services to maintain and to improve your credit score.