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Tips to Maintain a Good Credit Score

By Ruth Racey
Published: Saturday, December 26th, 2009

One of the best things that you can have is a good credit score. This is because of the fact that having a good credit score actually brings in a lot of opportunities and makes your finances more manageable. Remember that in almost all of your transactions, as long as you use credit cards, your score always has a large bearing. For instance, whenever you are going to apply for a loan, surely, you can be able to get your loan approved whenever you have high scores to show. However, when you have low scores, expect that you will have your loan disapproves by lenders. 

In this case, take note that your credit score is actually a gauge of your credit worthiness, or your ability to pay vis a vis the health of your credit account. Having a low credit score surely does not make you credit worthy enough to be granted loans by lenders. However, having high scores would likewise enable you to become creditworthy enough to lenders, making your loan approved by them.  In addition, whenever you have low scores, you will be forced to pay for your bills at a high interest rate, raising your chances of being bankrupt. However, having high scores usually brings in low interest rates to pay for. 

Here then are the different ways on how you can be able to get high credit scores: 

  • Always pay your bills on time
    One of the main reasons why you are very likely to have a low credit score is because of bad payment history. Whenever you are always paying late, or are even delinquent in paying your bills, credit agencies will see you as a very likely candidate to accumulate a large amount of debt, making you have low credit ratings. However, always paying on time will surely make you credit worthy, as well as having high credit ratings. 
  • Do not spend over your credit limit
    Do not forget that your credit account has a credit limit, and it is there because of some reason. Therefore, do not fall into the trap of spending over your credit limit. Doing this would only make you have a low credit score, which may mean nightmare to your financial account.  
  • Lower your credit to debt ratio
    Your credit to debt ratio is the ratio between your outstanding balance and your credit limit. When you have a lower credit to debt ratio expect to have higher scores waiting for you.

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