Maintaining a Good Credit Score: Two Things to Remember

hundred dollars bundleGood credit score is important in the real world. It’s basically your weapon for your future financial needs, such as home, car, student and title loans. You also need this when applying for credit cards. Another important thing to note is that your credit score does not only tell the fate of your approval when borrowing money. In some cases, it’s also the basis of how much interest lenders could charge you. But, how do you establish and maintain good credit standing?

UtahMoneyCenter.com shares the two most important things you need to know about your credit score:

Keep Balances Low and Always Pay On Time

Whether it’s your phone or credit card bill, paying on time is always the best practice. You can avoid piling up balances and finance charges; you’d also be free of headache. Even if you pay the minimum every month, if your balance is too high and you are beyond your capacity to pay in full, you will realize in the end that you are almost only paying the interest charges and not your actual balance. Keep your balances to a minimum. Don’t go beyond your limit — not the limit of your credit card, but your personal limit as a consumer.

Your Credit Record Can Haunt You Forever

If you have a bad credit record, expect it to follow you around for years. Be responsible in paying your bills. Don’t wait until you are drowning in debt or running from a collection agency. It’s not like some computer game that when you mess up, you can start over in a heartbeat. The bad record will be tattooed in your name for a very long time; to get to a better place financially, it could take a while to fix your credit mistakes. But, repairing a poor credit score is doable —just do your research and learn from your previous mishaps.

Handling finances is not an easy job. Many people can be so bad at it that it would require them a few credit mistakes before they learn how to be responsible. But, you don’t have to learn from (your bad) experience when it comes to protecting your credit score and maintaining its good standing. Just remember these two things and you’ll be fine.

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