Maintaining a good credit score is not as difficult as some people think. There are a few rules to follow, and if you keep track of your score you won’t have to worry about getting the best home and auto loans when the need arises. Using new apps on your phone or computer software also helps keep you aware of your spending and payment habits which directly affect your score.
Whether you have credit cards, student loans, rent or mortgage payments or any other monthly bills, make sure the payments are made on or before the due date. One of the easiest ways to ensure the payments are made is to set up automatic withdrawals through bill pay with your bank. Everyone is busy and the less you have to keep track of payments, the easier it will be to maintain a good credit score.
Most people do not need more than one or two credit cards. Credit cards are sometimes considered “bad” debt especially if the cards have a high credit limit. Use cards that give you points or cash back and try to pay off the balance each month. Credit reporting agencies use this type of payment record to evaluate your overall credit score.
Just because the cashier at the local big box store offers you a credit card to save money on your purchase does not mean you have to apply. Weigh the difference between opening a store credit card and using one of the cards you already own. More than likely you will save just as much money using your own card and you will not have excessive credit inquiries on your report.
You never know when you might get hurt and can’t work, get laid off from your job, or need repairs on your car. If you set aside a little money each pay period you will have enough money in savings to take care of these expenses. If you find you need to purchase a new car, you can use part of the money as a down payment to keep your interest rates low.
Shopping for large items like cars and houses usually requires a purchase with credit. Maintaining a good credit score will make the buying process simple and you will get a much better deal on your interest rate. Follow a few easy suggestions and walk away a happy consumer.
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