Tips For Keeping A Good Credit Score

Chances are you’d like to have a great credit score so you can get a low interest rate if you need a loan.  If you learn what types of mistakes to avoid that would lower your credit score, you’ll have a greater chance at building a wonderfully high credit score. Keep the following tips in mind:


Order a credit report from the three main credit reporting agencies.  You might be error free on one of your credit reports, but there could be errors on one from a different credit reporting agency.  Go ahead and order one free annual report from the three main reporting agencies: Experian, Equifax, and Trans Union. If you find an error, go ahead and contact the correct agency to find out how you can get it corrected.


Pay your debt on time.  If you’re late on debt payments, it will affect your credit score negatively. Be sure to pay your debt before the due date and if at all possible, pay more than the due amount. Don’t forget to pay your income taxes on time as well.  If the IRS puts a lien on your property, your credit score will certainly drop a sizeable amount.


Don’t co-sign an auto loan.  If you can avoid co-signing an auto loan, do so. Co-signing can drop your credit score between 5 and 20 points.


Pay your library fines, medical bills, and parking tickets. If you’re turned into a debt collection agency for unpaid fines, your credit score will drop 25 to 100 points depending on what your credit score is. The higher your credit score, the more points will be deducted.

If you can’t pay a bill in full, call the place of business and see if you can make payment arrangements.


Keep a limit on store credit cards.  I’m sure you’ve heard this line at every major department store upon checking out: “Would you like to save 10% today by signing up for our store credit card?”  You could potentially have 10 to 15 new store credit cards within one month if you wanted, but the high number of inquires will end up hurting your credit score.


Keep at least one credit card and use it.  If you have one credit card and the credit limit is $2000, go ahead and use it sometimes and pay the balance off when the bill comes. This helps your credit score grow little by little.  Don’t max it out, as that will hurt your credit score.  Financial experts state that you should have between a 7 to 10% utilization rate when it comes to your credit cards.


Hopefully you won’t need a lot of loans in your future, but if and when you do, you want to have a great credit score so that your interest rate is low.  Low interest rates save you hundreds and thousands of dollars over time, so do your best to follow these tips and keep your credit score growing over time.

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