A healthy credit score is a happy credit, and this can only be the case if you take steps to ensure that your credit score remains high. Low credit can prevent you from opening bank accounts, credit lines, getting approved for mortgages, and so much more. Here are just a few tips for keeping that score high!
1. Always pay your bills on time with slightly more than the minimum payment. If this has proved to be problematic for you in the past, perhaps set up reminders to make sure that you don’t miss a payment. A few missed payments won’t completely hurt your score, but if it becomes a habit, then you better take steps to break that!
2. Eliminate small balances on credit cards. Rather than spreading payments out across multiple cards, put payments on one card (usually the one that has the lowest interest rates) and try not to let small amounts sit on cards. These are called “nuisance balances” and can ultimately be problematic for your score.
3. Avoid high balances on credit cards. In the same way that low balances can damage your credit score, high balances and getting close to maxing out a card can also hurt. Be careful of putting too much on your cards!
Image via Advia Credit Union.
