How To Get and Keep A Good Credit Score

19 March of 2015

Your credit score is a little bit like hidden currency. Basically, your credit score will let people know that you are responsible and can pay your bills on time. If you don’t maintain good credit, you may wind up putting larger down payments on homes and cars. Moreover, you may not be able to take out loans or lease apartments. Indeed, life can be limiting if you don’t have great credit. Fortunately, there are a number of ways to build good credit and maintain good credit so that you can apply for credit cards, take out loans, or start a business if you want to. Here is how to get and keep a good credit score.

1. Stay on top of your credit report – you want to rectify any inconsistencies, errors or debts sooner rather than later. There are many programs you can use, like Credit Sesame, that will allow you the opportunity to closely monitor your credit report. Staying on top of your credit report is the best way to maintain your credit.
2. Apply for lines of credit – either through your business or for your personal needs. When it comes down to it, opening up lines of credit and then paying your bill at the end of the month is one of the best ways to build a healthy credit score. For instance, you may be able to open a line of credit with your bank for your business. Moreover, applying for credit cards is another great way to open lines of credit.
3. Always pay your credit card bill on time – the moment you are late, your credit score will get docked. When you have a credit card, you want to remain diligent about always paying your bill at the end of the month. If you are late paying your bill, your credit will start to become affected. Moreover, you will start incurring interest, which will worsen your financial standing. You may even want to set up an automatic payment system.
4. Hire an accountant to manage your finances and budget – you want to get to a place where you are only spending money within your means. There are many reasons why hiring an accountant is important. Not only will an accountant keep you up to date with your taxes – he or she will also help you manage your budget and cash flow. Most licensed and bonded CPAs will have unique ways of helping you budget, which will really help your credit score in the long run.
5. Never default on your mortgage – this is one of the best ways to destroy your credit score. On top of everything, you also want to stay away from defaulting on your mortgage. This is often what gets people in the most trouble, because mortgage payments can be quite large. If you feel like you are going to have trouble paying your mortgage, you want to find a solution before your credit score takes a hit. In the end, it can be hard to come back from late mortgage payments.