How to Keep Your Credit Score High

woman with computer in living room

There are many benefits of having a high credit score, like lower interest rates on loans and credit cards.  It’s important to understand how your credit score can affect your long-term borrowing plan and lending patterns. And in this ever-changing world of credit opportunities, there are many ways to stay on track with your credit score.

 

Manage Your Credit Score—Credit and Debt

Your payment history and debt level count towards 65% of your credit score.  Here are a few tips for managing debt.

 

Keep track of your spending.  Create a monthly spreadsheet or calendar that includes due dates of bills, pay day, and any special occasions that might have you spending a few extra dollars.

 

Don’t exceed your credit limits.  Your debt-to-credit ratio is determined based on what you can borrow versus how much you owe.  Exceeding credit limits can result in over limit fees and penalties, so it’s a good idea to use less credit than what’s available on your card. 

 

Need to get your credit cards back in order?  Use one of our financial calculators to find the best strategy for paying off that extra debt.

 

Pay on time and what you owe.  Keep your credit score high by always paying by the due date, even if it’s just the minimum balance due. 

 

Moving?  Job transition?  Big life events are experienced by all borrowers.  Don’t be afraid to call your lender to ask for a little flexibility.  Most lenders will be happy to work with adjusting your payment schedule to keep you on track.

 

Thinking about consolidating your loans?  Use this financial calculator to see what works for you.

 

Keep Established Credit Lines Open

The length of credit history is 15% of your credit score.  Most lenders will look for a balance between how many credit lines a borrower has open, the debt-to-credit ratio, and the likelihood of repayment when determining credit approval. 

 

Knowledge is Power

Credit scores can change as often as every 30 days.  Make sure you know as much about your credit score as your lenders.  Check out our interactive credit management tutorials.

 

Not sure what your credit score looks like?  Get a free copy of your annual credit score report.


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