5 Tips To Help You Maintain A Good Credit Score

Your credit report may not seem very important, but in reality, it can impact your finances and even your career prospects. Whether you're applying for a loan or searching for your next job, there are many situations where a positive credit history can help you get ahead of the competition. Adverse credit history can make it challenging to get approved anywhere from renting an apartment to buying your next car or even landing an internship – and the effects can last long after the adverse events. So, how can you keep your credit report up to date??

Monitor Your Credit Report

Once every 12 months, each of the three main credit bureaus — Equifax, TransUnion, and Experian will furnish you with a free copy of your credit report. Take advantage of those rights in reviewing all three reports for inaccuracies. Keep track of any discrepancies or problems you discover and keep tabs on how long it takes to have them fixed.

Reduce The Amount You Owe

You should always pay down your debt. It might seem counterintuitive, but carrying a low balance can boost your credit score. When you make payments on time, it shows lenders you can handle responsibility and makes them more likely to extend new credit with favorable terms. To reduce your debt load (and rack up positive payment activity), focus on paying down high-interest balances before transferring what's left into accounts with lower interest rates.

Set Up Automatic Bill Payment

Automatic bill payment can be an excellent tool for managing your credit. Set up an automatic bill payment so you don't forget, and so you're making on-time payments. You'll avoid late fees, which will help you maintain a higher credit score.

Ensure Your Oldest Credit Account Stays Open

One thing counts above all others: payment history regarding your credit score. All else being equal, a lender is more likely to extend credit if you have an established record of making payments on time. That means it's essential to keep any older account open, even if it's a small balance card with a low limit that you rarely use anymore.

Avoid Having Too Many Cards

If you already have a lot of cards, or if you have old accounts that haven't been used in a while, these factors can hurt your credit. Having too many credit cards could mean not paying off all your debt. Keeping balances on your credit cards can also be harmful to your credit score. The more debt you have outstanding, such as having multiple balances on multiple cards, is worse than having one large balance from one card only.

While credit can be intimidating, it's important not to let a low credit score hold you back. If you want to boost your score, start by reviewing and updating your credit report. Next, look into taking out a small loan that you can pay off in full each month; good payment history is one of the critical ways lenders assess whether they will extend larger loans in the future.

Now that you know various simple strategies, contact National Financial Credit Group today to learn more about our services and help with your credit report. Visit our website today for more credit information.