How to Maintain a Good Credit Score

Melanie 

Ortiz Reyes

Content Specialist

If you’ve worked hard to increase your credit, you’re probably wondering how to maintain it. This requires financially responsible habits and consistent effort. 

Having a good credit score will help you qualify for better loan terms, rent a home, avoid or reduce security deposits, start a business, and depending on the industry, secure employment opportunities.

 

Here are some tips on how to maintain your credit score:

Pay Bills on Time - Of course, one of the most important tips is paying your bills on time. You want to show creditors you can pay your debts responsibly. Late payments negatively impact your score, so we recommend setting up automatic payments or set reminders to ensure you don’t forget. 

Manage Credit Utilization - Aim to keep your credit utilization ratio below 30%. Keeping your credit balances low will help keep your score steady. High balances on credit cards will have a negative impact on your credit score. 

Paying off credit card balances in full each month is ideal, but this isn’t always possible. Avoid unnecessary purchases by asking yourself, “Do I need this, or do I want this?” Most of the time, it’s something we don’t need. Many people with good credit say they tell themselves they can’t afford the item or service if they can't pay for it in full at the end of the billing cycle.

Keep Track of Your Credit Reports - Regularly check your credit reports from the major credit bureaus. These are Experian, Equifax, and TransUnion. Review them carefully to make sure they’re accurate and up to date. Report any discrepancies to the credit bureaus and have them corrected.

Don’t Close Old Credit Accounts - Avoid impacting the length of your credit history by keeping old accounts open even if they have a zero balance. This helps lower your credit utilization ratio.

Be Mindful of Co-Signing - If you co-sign a loan for someone, you are equally responsible for the debt. Your credit will be negatively affected if the primary borrower fails to make payments. 

Avoid Opening Unnecessary Accounts - Only open new credit accounts when it’s indispensable and avoid excess credit applications in a short period. It’s best to wait six months between credit applications.

Pay More than the Required Minimum - It’s wise to make bigger payments instead of only minimum payments. Minimum payments will extend the time it takes for you to pay off the debt and increase the amount of interest you pay.

Maintaining a good credit score is a long-term commitment. However, practicing these habits will help you establish a strong credit history, leading to better financial opportunities.