There are many benefits that you can get by having an excellent or perfect credit score. Most of the money lenders will start fighting for you and your business if you have a good credit score. This will also give you access to low-interest loans.
Using your credit cards responsibly and wisely is one of the proven ways of maintaining an excellent credit score. Maintaining a perfect credit score is crucial for individuals who want to apply for credit cards or loans. The following are the proven tips that you should follow to maintain a good credit score.
Prioritize on Your Debts
Loans include both instalment debts (mortgages) and credit cards (revolving debt). You should not neglect to pay your debts, including those with low interest rates. Having a poor credit score can hurt one’s chances of getting mortgages or low interest loans. One is also required to have a good credit score when opening new credit card accounts. In general, all debts should be treated equally.
Keeping the Old Credit Cards Open
Keeping one’s old credit cards is an effective way of maintaining a good credit score. It does this by extending the length of one’s credit history. Maintaining a long credit history can improve your credit score by ten per cent.
Consolidate Your Credit Cards
Some people prefer using different cards with small balances, but this approach can backfire when overused. Eliminating nuisance’s balances is one of the best ways of improving one’s credit score. Having several cards with balances will end up lowering your credit score instead of boosting it.
Avoid Checking Your Credit Score Every Month
Most lenders will always check your credit score before lending your money and determining the interest loans for various loans or credit cards. Painting an accurate picture for a credit score is a process that takes a lot of data point. You should, therefore, give your credit score a considerable amount of time for it to be adjusted upward.
Increase Your Loan or Credit Limit
Sometimes lenders might offer an increase in credit limit, especially for those guys who have a good standing. Compulsive spenders can maintain their good credit scores by asking for loans with a high limit. However, people should always remain responsible for their spending.
Negotiate For Low Interest Loans
Asking for a low interest loan is another great idea. Most people fear to make this request since they are afraid of being told “no”. Some lenders out there are ready to lower the interest rates to bring in more new customers.