Having a bad score is not something you want to have in your life. That being said, it’s not like you can snap your fingers and raise your credit score either, or everyone would have a perfect score. But there are however things you can do in order to make sure that your credit score raises or remains at a high point, thus allowing you more flexibility in your future purchases and financial moves. So how does one go about fixing their credit score or keeping it in a good state? We are going to address this question in the remainder of this article. If you’re interested in checking out more credit related stuff, reviews can be found here.
Be aware of everything making up your credit score
Your credit score isn’t just some magical number that some people make up. It can be calculated based on a number of factors. If you want to have more control over your credit score, it is critical that you are aware of all the factors that go into the calculation of this score. Knowing what makes up the credit score is how you can start managing all the individual pieces in favor of boosting your score. There are many different things that go into your credit score, so you should research everything eligible for your particular case, but here are some of the ones you should take into account:
- Debt level
- Payment history
- Recent credit
- Credit age
- Mix of credit
Never be late on your bills
You want a great credit score? Then you must make it your goal to never miss a payment day for your bills. All your bills need to be paid in time, every time. That’s how you make sure that you won’t start going downhill as far as credit score is concerned. Falling behind on your bills is the first step towards a much more complicated problem so why not avoid it entirely? Also, it’s not just your credit card bills or loans that you need to pay up in time, but the entirety of what you owe and would otherwise end up on the credit report.
A low credit card balance is key
This is something that not many think of. Usually, if a person is given a certain limit on their credit card, they will either go over it, which is bad, or just cap on their limit, which believe it or not is also bad. Why is it bad to spend exactly as much as you were given permission to spend? Because your credit card issuer will report the balance at the closing of your statement, not when the new one comes in. This means that even if you pay everything that you owe in full, you will still accumulate bad credit based on credit reports. Yes, it’s kind of weird and unfair in some ways, but it’s how it is and you must keep this in mind if you are to maintain a good credit. Somewhere along the lines of 30% of your max credit limit should be ok to spend.