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Easy Ways to Have a Good Credit Score

By Ruth Racey
Published: Sunday, December 27th, 2009

Many people are looking for ways to have a good credit score. This is because of the fact that it actually makes the lives of credit consumers much easier and much more convenient. Remember that every time you are going to apply for a loan, having a high credit score will surely help. High scores bring in approved loans, while low scores bring in disapproved loans. In addition, high credit scores are also very helpful in paying your bills, for the rule is, high scores usually brings low interest rates. Likewise, low scores will force you to pay for high interest rates. In this case, whenever you want to have an easier financial life, here are some tips on how you can have a good credit score: 

  • Always stay below your credit limit
    A lot of consumers are falling into the trap of overspending, with them ending up having bills way beyond their respective credit limits. This will surely earn you a low credit score. Remember that being able to spend way beyond your credit limit will surely make you more vulnerable to accumulating debt, especially to credit agencies. Therefore, always put your spending at a check, below your credit limit. 
  • Lower your credit to debt ratio
    Your credit to debt ratio is actually the ratio between the total debts that you have incurred vis a vis your credit limit. In this case, credit agencies actually deem you to be not so creditworthy when you always spend until your credit to debt ratio are very high. Lowering your credit to debt ratio then is a very wise thing to do. 
  • Always pay for your bills in time
    Payment history is also one of the main determinants of your credit score. Whenever you are always delinquent in paying your bills, surely, low scores are awaiting you. In this case, when you want to maintain a good score, always ensure that you are able to pa for your bills on time regularly. Doing this will surely make you a better financial manager, as well as having high scores. 
  • Minimize the times that you access your credit report
    Every time you access your credit report, sadly, your score is going to be lowered. Therefore, always be sure that you are only accessing your credit report every time you need it. This may be a simple piece of advice, but it actually makes you maintain a good score significantly. 
  • Do not just close your account and have a new one
    The fact is that the greater credit accounts that you have, the lower your score will be. In this case, do not just close your account and get a new one when wanting to have abetter score, because this is only a myth. In realty, lower scores is what you can get in doing this.

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