Tips to Maintain a High Credit Score

| July 3, 2012

Tips to Maintain a High Credit Score

Maintain a High Credit Score

Maintain a High Credit Score

Do you have a high credit score? Do you think that having a high credit score is enough for gaining financial freedom? Then rethink about it. Having a good credit score is as important as maintaining it. If you do not keep an eye on maintaining your score it is likely that your scores may get lowered and you may get into a financial crisis. So if you want to maintain high credit scores throughout your life here are a few things to follow:

  1. Avoid outstanding balances in your credit cards: Credit scores get lowered mainly due to credit card balances that are not paid. It is very important that you do not have any outstanding credit card balance in your account. Make sure that you pay them off completely at the end of each month. Any default with your payments can have negative impact on your scores. This will also save you from paying much interest along with them. You can utilize the money you save to pay off your other investments.

  2. Maintain an emergency fund:  You may never know when you are struck with an accident or an emergency crisis. It is better that you have a backup plan beforehand instead of trying for new routes then. Maintaining an emergency fund can be a fruitful idea to get you out of financial crunches during emergencies. You can use the fund to meet the expenses thus saving you from accumulating any extra balance in your credit cards. However remember to use your fund only for meeting your needs and not for investments in stocks and bonds.

  3. Get a reliable insurance plan: Many of the debt problems arise when you accumulate huge balance on your cards from medical bills. The cost of health checkups and medicines are constantly rising thus it can take a toll. The medical insurance plans at times may have costly premiums so you may find it difficult to get a medical insurance done. It is thus advisable that you look for an affordable medical insurance plan that can cover your expenses when in need.

  4. Make your investments prudently: It will be of no use of buying more property like a house, if you cannot afford to continue with the instalment payments after a certain point of time. You need to remember that the investments costs include the maintenance, decoration and repairs costs along with the monthly premiums. Most of the time the homeowners forget to include such costs in their investments and face a problem later.

  5. Avoid debts with student loans – If you have taken up a student loan for financing your studies make sure that you pay them off before you leave college. Though student loans are counted as ‘good debts’ you cannot be sure of getting a good job after grads. Then if you accumulate balance which you cannot pay off they can negatively affect your credit scores. Thus keeping your credit cards cleared off any undue balance will be a good idea.

Author bio:  Jonny Pean is a financial consultant and writer for EasyFinance.com. He helps people to handle their financial problems related to loans, personal finance management and home equity issues.

Short note: Having a good credit score is great but it is also important that you maintain the score and not rack up any undue balances in your account. The article gives you some tips on how you can maintain a good credit score.

 

Tips to Maintain a High Credit Score

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