There are plenty of things you can do to maintain the good credit score youve worked so hard to build, and one excellent reason why you should care: money.
A good credit score typically means lower interest rates, and that means more cash in the bank. Itll also be easier for you to get loans and credit.
1. Treat all of your debts equally when it comes time to pay
It doesnt matter that your line of credit, for instance, has a lower interest rate, you shouldnt prioritize other loans if it means neglecting that payment. Constantly having a balance on your credit cards can lower your score and hurt your chances for getting approved for loans or any other credit card accounts you may want to open.
2. Keep old credit cards open to maintain the longer history
There are a few reasons why keeping old cards open can benefit your credit score, and one is the length of your credit history , which accounts for 10% of your score.
3. Consolidate cards to have fewer balances
Having a number of small balances spread out over several different cards may seem smart, but this approach can actually backfire if you overuse it.
Instead, John Ulzheimer of Credit Sesame says you’re better off paying these amounts down. Continue reading “14 Helpful Tips For Maintaining A Good Credit Score”