How Do You Maintain A Good Credit Score?
Credit Makes The World Go Round
If you ever desire to get a loan for a car, get a mortgage or get a new credit card, you are going to have to have good credit. Apart from just obtaining new credit, now, some employers and landlords will look at your credit before they will accept your application. People realize that a person who is able to maintain good credit is generally a person who has a high level of integrity, and this person can be trusted to fulfill his or her financial obligations.
There are situations that may come up that are out of our control, but even if you do end up having an event that lowers your credit score, you do well to work hard to get it back up. The question remains: how can you obtain and maintain a good credit score?
#1 Get A Good Start
One of the best things that you can do for your credit is to start off well. When you get your first credit card, be careful with its use. Do not use your credit card like it is free money. Use it as if it was directly connected to your bank account. You should only use the money on your credit card that you can pay off within the month.
So many young adults get into bad credit card debt because they do not know how to use their credit cards. If you start off with any student loans, make sure that you pay your loans on time. If you start to be irresponsible with your credit, the problems will only intensify. Do yourself a favor and take good care of your credit.
#2 Pay Attention To Your Credit
There are several things that can occur to your credit without you even knowing it. First of all, there are identity thieves who would love to steal your credit information. Also, if you ever lose your wallet, you want to be sure to turn off all of your credit cards so that no one can use them. Visit Daily Prosper to know if it is illegal to use a business credit card for personal use.
You may wonder, does applying for a credit card hurt your credit? The truth is that there are different inquiries that can be made on your account. One type is called a soft inquiry and the other is a hard inquiry. SoFi is a finance company that has more than four million members.
According to SoFi. ‘ A soft inquiry will not hurt your credit, but a hard inquiry may drop your credit score a few points.’ If you are applying for new credit, be sure to ask the company if they will be doing a soft or hard credit check.
#3 Pay Bills On Time
This was partially mentioned before, but you must make paying your bills on time a priority. On-time bill payments have a huge effect on your credit score. This is one of the simplest ways to maintain good credit.
Your Credit and Your Life
A good credit score is really essential if you are going to get a loan or get a job. Since that is the case, guard your good credit with your life. Watch it closely, and if there are any errors that occur with your credit, fix them without delay because bad credit can ruin your life.