It's a new year. Last year you managed to pull yourself out of debt and build up your credit a little bit. Your financial outlook is improving, but you know that one wrong choice could reset your progress. This year's resolution is to keep your credit score healthy. Buildworth Strategies is Hialeah FL credit repair's number one credit repair and maintenance service. We can help keep your credit score healthy with good, sound financial advice like the 5 strategies listed below.
5 Ways to Maintain Healthy Credit
1. Pay down your debt
Part of your credit score is contingent on how much of your credit you are actually using. To maintain healthy credit, you must keep your credit card utilization rate below 30%. If you do have to use a credit card to make any purchases, make sure to pay down the balance quickly, and keep it low so that your credit doesn't suffer under the weight of unnecessary debt.
2. Pay your bills on time
One of the worst things that you can do to negatively affect your credit is to make late payments. Paying your bills on time ensures that your credit remains healthy, and that you are steadily moving your balance in the right direction.
Making on-time payments has never been easier. Almost every credit card service, bank, or other lending agency offers an auto-pay option. Setting up automatic payments ensures that you never miss a payment, giving you peace of mind that your credit is safely intact.
3. Don't close old accounts
Another key component of your credit score is the length of your credit history. Even if you aren't actively utilizing an old line of credit, it doesn't mean that it's useless. Older, dormant credit lines help to establish the length and reliability of your credit history, giving your credit score a much-needed cushion.
4. Don't apply for new cards
Anytime you open a new line of credit, it affects your credit score. Opening too many credit cards or lines of credit at once not only damages your credit score by causing reporting agencies to perform multiple checks against your credit history, it also shows lenders that your income to debt and credit utilization ratios have the potential to radically increase. In turn, this can cause your credit's health to suffer greatly.
5. Take out a credit-building loan
If your credit score needs a quick shot of adrenaline, it might be worthwhile to visit a credit union and take out a credit-building loan. With this type of loan, you borrow money from the bank without intention or ability to spend it. The money serves as a benchmark or goal. Every month you pay a fixed amount into the account until the goal is reached. This shows credit reporting agencies that you are able to reliably meet your repayment obligations on time without you losing any money in the process.
A Strategic Credit Partner
The Hialeah Florida area depends on Buildworth Strategies for its credit repair needs. We have served southern Florida since 2015, helping people to rebuild their credit through sound financial planning, tips, and advice. Please contact us and let us help you to ensure the continued health of your credit score in the coming year.