5 Simple Hacks On How to Maintain A Good Credit Score

L ooking for ways on how to maintain a good credit score? This guide is just for you! 

Credit scores reveal how an individual is with their credit. Lenders prefer and look for people who have higher credit scores since they seem more creditworthy and easy to work with. Credit scores also determine how much loan that person is qualified for and interest rates are decided upon that. In order to get loans with good interest rates it is important for you to have a good credit score. You should know that scores from:

• 580 to 669, are considered fair 
• 670 to 739, are considered good 
• 740 to 799, are considered really good 
• 800 plus, are considered excellent 

Ways To Maintain Your Credit Score 

Let us venture through some tips that you need to keep on the top of your head in order to maintain your credit score. It may seem tough and tricky to keep up with, but you will get a hang of it once you deal with it for a few months. 

Pay Installments On Time 

The most straightforward, important, and easiest way of maintaining your credit score is through paying installments. Keeping track of and paying your Equated Monthly Installments (EMI) can take you a long way in maintaining your credit score and even further in improving it. 

Pay attention to all your due dates and be aware of funds in your bank account. You do not want it to be running low causing you to pay a late fee and increase your interest. Delaying your payment for more than 30 days can negatively affect your credit score. To help you with this you can sign up for automatic payments, this way you can conveniently make your payments when time is due. All you have to do is make sure your account is sufficiently funded to make the payments. 

Emergency Funds 

Life is full of unexpected events, it is never a bad idea to keep a good amount of savings in case you run out of money to make your payments. Saving upto 15% is a good way of having a backup or even better to keep up to 3 to 6 months worth of savings. This way if you ever face difficulties whether it be losing your job or not enough funds in your account, you can take time for a few months to patch things up while your savings can cover up till then. You won't even have to take loans that you will find difficult to repay. 

Keep Track Of Your Credits

Supervise your credit and debit card transactions online, know what cheques you have signed, confirm deposits, and be aware of suspicious behaviours and report them. It is not common but very possible for someone to hack you and cause negative effects on your account and credit score.  

Avoid Closing Your Old Credit Card Account

Closing a credit card account can have an impact on your credit score. It is better to stop using it rather than closing it completely. If you succeed in maintaining and paying the bills of your old credit card in a timely manner, they can show a good credit score and further improve it as well. 

Credit Repair Companies 

If you feel like you can not maintain your credit score, then you contact a credit repair company. They will negotiate with your creditors and the credit agencies, in exchange for a monthly fee. Be careful and choose a trustworthy and good credit repair company to keep your information safe and get all the great opportunities of a good credit score.

In Closing 

Maintaining a good credit requires a responsible mindset and commitment. You need to be attentive of all your due dates and pay all your dues in time to keep the credit score maintained. Keeping a savings amount is a wise decision to make, this will reduce the risks of missing due dates in case you run out of funds in your account. If you have old credit cards then consider keeping it and avoid closing it, if you keep paying your old card payments it will give you a good credit score. If all of this combined is too overwhelming for you, then it is never too late to ask a credit repair company to give you a hand. They can negotiate for you and make things easier and more organized for you and you can get all the benefits of having a great credit score. 

Now that you have learned how to maintain a good credit score, you can take your finances into your own hands. 

• This post is tagged in:

• loans
• Credit cards
• Credit score
• Spendings
• Maintaining credit score