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Credit Report & Credit Score; Credit Repair, Debt Management > Credit Score > The Do’s and Don’ts Regarding Your Credit Score

The Do’s and Don’ts Regarding Your Credit Score

By Ruth Racey
Published: Saturday, February 20th, 2010

One of the most necessary things to have when you want to see a healthy credit account is a good credit score. This is because of the fact that a good credit score actually makes your financial transactions smoother, makes you pay for your bills easier, and also, makes you have more chances of getting your future loan approved. 

In this case, better debt management surely indicates a high credit score.  However, whenever you have a low credit score, this may now be an indicator that you are actually having a disastrous credit card account. This is because of the fact that having low scores would make you have difficulties whenever you are applying for a loan, makes you pay for high interest rates, and also, makes you have your debt piled up. 

Surely, all consumers would like to prefer having a high credit score rather than a low one. In this case, remember that your score is actually an indicator of your credit worthiness. Your credit worthiness is actually an indicator of whether you are going to be able to pay for your debt in a good way or not. Therefore, having a high or low score would then have a large bearing in getting loans fro lenders or not. Here then are some of the do’s and the don’ts when you want to have a good credit score:  

The Do’s: 

  • Always pay your bills on time
    Payment history is one of the major determinants of your credit score. In this case, being able to pay on time, especially on a regular basis, surely makes you have a better score. 
  • Be sure to put a check on your balance
    The higher your credit balance is, the lower your score. However, having a balance below 30% of your credit limit makes you have a significantly higher score. In this case, you must be able to choose wisely. 
  • Improve your credit history
    Even though you have a bad credit history, you can actually improve it by starting to pay on time or trying not to overspend. This would make you have higher scores. 
  • Always do a credit check
    Checking your credit history makes you have protection from identity theft

The Don’ts: 

  • Have too many credit cards
    Too many credit cards raise your chances of accumulating debt, making you have lower scores. 
  • Have your credit card balances transferred to another account
    Transfer of balances hurts your credit score a lot. 
  • Have a lot of new credit opened
    Whenever you are opening new credit at a dramatic pace, surely you will get a bad score.

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