Need a boost in your credit scores? Today we'll be covering 7 helpful credit tips that will help you maintain a positive credit score.
1. Pay your bills on time
One single 30 day late payment can drastically lower your credit scores. Don't be afraid to request a waiver if you're late to avoid an impact to your credit score.
2. Set up as many automatic payments as possible
This will lower your chances of missing any payments. Make sure to also track your bank statements to ensure all payments are being drafted correctly. If any banking information ever changes, be sure to update all your automatic payments to avoid any late payments.
3. Don't carry a balance on your credit cards if you don't have to
There is a lot of misinformation out on the internet of what balance is best to keep on your credit cards. Paying your open active credit cards down to zero will help you save money by avoiding interest charges.
4. Don't be afraid to increase your credit limit to keep a good balance to limit ratio on your credit cards
On the other hand, if you are carrying a balance that cannot be paid down right away, look into options for increasing your credit limit. It's recommended to keep balances under 30% of your available credit limit to avoid high debt amounts from lowering your credit score.
5. Ask your lender to lower your interest rate
If your credit has improved from when you initially opened up any loans, see if you have any refinancing options. This will help you save money by lowering the total amount of interest paid over the lifetime of the loan.
6. Keep good-standing accounts open and use them from time to time
Have a good standing credit card you're thinking of closing? Don't! Having aged accounts that have great payment history on your credit report help your score. To avoid these accounts being closed due to inactivity it's best to use these cards every 3-6 months.
Don't use the card often? Again, aim to pay balance back down to zero. This way it will keep your accounts active, and you won't have to worry about keeping track of an extra balance being paid off.
7. Only open accounts when it makes financial sense
Once your credit has improved, you may see a rise in offers. From your bank to pre-qualified mail offers, everything from personal loans to credit cards may be offered to you. Just because it is offered, it does not mean you should open it. Always keep your financial well being in mind and avoid tackling on unnecessary debt. As long as you have one active revolving line of credit (credit card) opened at all times, this alone will ensure you have positive credit history being reported to your credit.
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*The information in this article has been provided strictly for educational purposes.