December 11, 2015
I Hate Credit Cards, But I Have A High Credit Score
A credit score can affect your ability to buy a home, a car, or even get financing for college. Keeping a high credit score is critical in your money power abilities. How do you keep a high credit score easily? There are many things that go into your credit score calculations and just as many things you can do to keep it up in good standing. Here are a few key steps you should follow to keep your credit score high.
Pay Everything on Time
From your cellphone bill to your rent and credit card bills, pay them on or before the date they are due. Late payments can wreak havoc on your credit score before you even realize it. Try to find out which of your bills report to the credit bureau to help you understand the impact of late payments. Most of the time you’ll find that they do not report unless you’re late. That can really cause your score to plummet in points if you’re late, even once. Be sure that you plan accordingly to pay your bills before they are due.
Do Not Max Out Your Credit Cards
Even though you have a $2000 limit on your credit card, that does not mean you should max it all the way out. The amount of credit used on your credit lines can impact your score negatively. Try to pay off whatever you use each month within the month following. This will help you build your credit score by showing positive payment history and avoid those painful dings in having too high credit limits.
Pay What You’ve Used
Instead of trying for the minimum payments each month, pay off the balances of your credit cards or loans, if possible. This will help you to increase your credit score and keep debt at bay. While it’s not always possible to pay off a mortgage or car payment, try to pay a little extra each month to help you pay it down faster.
Stay on Top of Your Credit Report
Many companies offer free credit reporting and some of your credit cards will track it as well. Stay on top of what’s going on with your report so that you can catch mistakes quickly. This also helps you prevent identity theft as you are always aware of changes, new applications, and hits on your credit. You can do this free through your credit card company or any of the major bureaus give annual reports.