Once a line of credit has been established it is very important to maintain a good credit rating. Your behavior regarding borrowing and making payments will greatly effect future loans or credit requests. Below is a list of examples that will keep you on track to maintaining a good credit report.
- It is very important to create and follow a budget. Unless necessary, do not charge more than you can afford to pay. At no point should you owe more money than you are making. Avoid making large impulse purchases as these purchases are especially difficult to pay off.
- Do not exceed your available credit limit. Keep a cushion between your outstanding balance and your credit limit. Make sure you have enough available credit in case of an emergency (car repairs, emergency home repairs, loss of income).
- Make Timely Payments. Pay at least the minumum amount required on time every month. Your payment should be received by your lender on or before the due date printed on your statement. Late payments will lower your credit score.
- Limit the number of credit cards that you hold. If you have credit cards with no outstanding balance and you do not plan on using them again, close the account. Keeping accounts open that you no longer intend to use is seen by creditors as potential debt and may hurt your credit rating.
- Keep track of your credit report. The information on your credit report is used to evaluate your applications for credit, insurance, employment and rental properties. You are entitled to a free copy of your credit report once every 12 months, per your request. You can obtain a copy of your credit report from:
Annual Credit Report.com
Annual Credit Report Request Service PO Box 105283
Atlanta, GA 30348-5283