How To Maintain a Good Credit Rating

Want to make it easier on yourself to get an auto loan, mortgage or new credit card account? Just follow these simple tips below to help maintain a good credit score. 

Pay Your Bills on Time
Even a single late payment can affect your credit score adversely. Not only must you make your credit card statements on time buy you must make prompt payments on your bills, and these can include loans, mortgages and utilities. If you pay your bills on time you will not have to worry about creating a negative effect on your credit score. 

Fine Tune Your Payment Amount
While it is important to pay the minimum due on each bill to maintain a good credit rating, it is even better to pay more than this amount. This helps to keep your overall balance down, lowers the amount of interest that accrues on your bills and helps to maintain a user-friendly credit score. 

Avoid Taking Out Too Much Credit
While it is easy to obtain new credit cards, it always isn’t such a good idea to get a new one. Each time you open a new credit card account it reflects in your credit history. Because of opening a new credit card account, your score may be reduced by a couple of points. Therefore, by continuously opening new credit card accounts the cumulative effect of this might lower your credit score by a significant amount. 

Spread Large Purchases Out
If you plan on making a large purchase or two, it is best to space them out rather than complete the transactions all in the same month. A Period of overspending can affect your credit negatively.

 Follow the tips mentioned above can help to maintain a good credit rating. This should make it easier for you to obtain new forms of credit. Just remember to make timely payments, limit your spending and only obtain credit cards that you intend to use.