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The economy continues to wreak havoc on the financial lives of a lot of people. As a result of that, a lot of credit scores have taken a dive. Drops in credit score can happen due to any of a number of reasons and can take a long time to rebuild. If your credit score is still intact you want to do whatever you can to make sure it stays that way. People who have sterling credit scores all do a number of things regularly that keep their scores high.

First, do the obvious and pay your bills on time. It’s the simplest and easiest way to keep a high credit score. Many credit providers will provide a short grace period but once you get past a couple of weeks past due there’s a chance your account could go to collection and that will torpedo your credit score in a hurry.

Second, pay all of your outstanding balances in full. A credit issuer will only require a minimum payment to keep the account from going to collection but that’s not going to help your credit score at all. Outside of the fact that you’ll continue racking up unnecessary interest charges, continuing to roll over outstanding balances month over month will show credit companies that you might not be able to pay off the balance. That’s a recipe for lower credit scores.

Third, don’t open new credit. Stores may offer you a 10-20% discount on your bill if you open up a store credit card on the spot but that will adversely affect your credit score. On a short term basis, your credit score will get dinged as you add additional credit to your profile. Manage it effectively and you can eventually start to bring that score back up.

Finally, build a credit history. The easiest way to raise your score is to show the credit companies that you can handle it. Show that you can consistently manage your debt and pay it off regularly and you’ll have a solid credit profile in no time.

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12y ago

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