Your credit score is a simple three-digit number that can have a massive impact on your financial life and decisions. A poor credit score can affect where you can live, interest rates on loans, the type of car you can buy, your insurance rates, and much more. That’s why it is so important to keep your credit in good standing. We’ve compiled a list of tips you can keep in mind in order to maintain a healthy credit score. Remember, if you need credit repair assistance, simply give New Credit Life a call! We’re ready to help.
How To Not Fall Back Into Low Credit Scores
Once you’ve gotten your score into a nice, comfortable place, it’s important that you don’t let up. One or two bad moves can make your score freefall back down, so you’ll need to be vigilant and take steps to protect your score. Check out our tips for maintaining and supporting your score after repair.
Consistently check your score
You should check your score as frequently as possible, especially after actions that would likely affect your score like applying for new credit or making a big purchase. Checking your score may be anxiety-inducing, but it’s important that you keep track of your credit.
Keep your credit utilization rate down
Your credit-utilization rate is the amount of credit that you are using in relation to your total credit amount. A high credit utilization rate will likely have a negative effect on your credit. Try to keep the balances on your credit lines low to keep your credit utilization rate down.
Pay down your credit more than once per cycle if possible
Are you paying your credit once per cycle? If financially possible, try to pay on your credit more frequently and bump up your payment amount slowly.
Keep your old lines of credit open
Once you’ve paid off a big debt, you may be tempted to just close the account. However, if it’s one of your older accounts, closing it may cause a big hit to your credit. This is because having a longer credit history is beneficial to your overall score, and closing old accounts will affect your score.
If you’re worried about misusing your credit line, try to come up with creative ways to abstain from overusing your credit while keeping the line open if possible.
Pay your bills ON TIME
This one may seem like a no-brainer but it is crucial to keep your credit score up. Missing payments is one of the most sure-fire ways to tank your score, so try to pay on all of your accounts on time and even early if possible, to avoid missing payments and harming your credit.
Don’t apply for new credit willy-nilly
Often, one of the first things that people will do when they look to improve their credit is to apply for new credit. However, that application for new credit can actually harm your credit in the short term? Credit inquiries will affect your credit, though it’s normally minor and temporary.
To avoid lowering your credit too much, do your research on the credit card companies that you are looking to work with before you apply, so you aren’t applying for dozens of credit cards in a short time period.
Slowly chip away at your debts
Too often, people will only pay the bare minimum on their accounts, which keeps them in perpetual debt and doesn’t help your credit all that much. Especially if you have a high credit utilization rate, you will want to prioritize getting your debts down, which will slowly increase your score.
Diversify your accounts
For each of the credit reporting companies, there is a specific breakdown that is used to come up with your credit score. By diversifying your accounts, you can provide a better base for your credit score and your finances as a whole.
Just checking your three-digit number is not always enough to adequately check your score.
How New Credit Life Can Help
At New Credit Life, we understand that improving and maintaining your credit can come off as complex, but it doesn’t have to be that way. New Credit Life provides credit repair and management services to get your credit score up and keep it there. Contact us today to learn more about how we can help you!