If you have a high credit score and want to maintain it or want to inject a kick in the rear to an ailing credit score, like most people today, then here are some tips to help you along the way to brighter credit days and nights. If you follow our advice it can be smooth-er sailing for you, your credit and your financial life as a whole. Just a few simple tidbits to keep in mind and you can make a drastic impact on your life, your finances and your credit score.
- Pay your bills early. Just like in the army early is on time and on time is late. You don’t want a hectic mail day or week to delay your payment if you mail it “on time” and result in you getting a black mark on your credit report for making a late payment. These negatives can add up quickly and lead to higher interest rates or flat out denial when it comes to looking for a home or car loan.
- Don’t carry a balance on credit cards ever if at all possible. Pay it off in full each month. If you can’t afford to do that , you should not be spending as much each month on your credit card.
- Spend what you can afford, not more. You want to establish yourself as a frugal, intelligent spender.
- Put a little money aside each month, even if it is only $5 – whatever you can afford. This will bode well with your bank and show that you are on a positive path financially. Your bank will be the most likely source of a car or home loan down the road, so the sooner you start proving your credit worth to them, the better.
- Don’t have too many open credit accounts at one time. Have and use what you need – close the ones that you don’t need. You don’t necessarily need a credit card for every department store. One good, fairly run visa credit card from your bank should be all that you need, with possibly one more card for emergencies only that you keep in a safe place.
- Monitor your credit score using your free annual credit report credits at all the major credit bureaus: Experian, Trans Union and Equifax.