Tips To Maintain A Good Credit Score

There are a number of factors that affect your credit score. It is important to have a good credit report in order to maintain a good credit score. Your credit score gives an idea about your trustworthiness to your future creditors. Here are a few major factors that affect your credit score.

Your credit score is affected by mainly your irregularity in payments. Regular payments are a must to maintain a good credit score. A single late payment goes down as a big negative in your credit report. Late payments hamper your financial life to the maximum.

Another important factor that affects your credit score is utilizing a lot of balance on your credit cards. This may prompt inquiries which further go down as a big stigma in your credit history. Make sure that you keep the balances on your credit cards low.

Experts recommend that balances on your credit cards should not be more than 30% of the credit limit. Similarly applying for too many credit cards in a short span of time may cause some problems. Do not close your old credit accounts even if they are not in use. Doing so reduces your credit history and a long credit history is some thing that the credit bureaus appreciate.

In the present era it is also very important to safeguard your financial life against identity thefts. If you end up with your identity stolen, you might ruin your financial life. To prevent ID theft you need to make sure that you check your credit report on a regular basis. You can get your credit report from one of the three major bureaus, Equifax, Transunion and Experian. Once a year you can get your annual credit report for free.

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