3 Ways to Keep Your Credit Looking Good
By Danielle Buffardi

We all know how important it is to have a good credit score, so we’ve compiled three ways to effortlessly help in keeping your credit report immaculate.

Tip #1: Pay your bill on time: Whether you mail your check in or pay your credit card bill online, paying it on time will only help your credit score remain in the green zone. Some people, like myself, have their monthly bill automatically sent through their bank. Some banks have named this type of service “easy pay” and it’s where you set a date each month, tell the bank how much and who to electronically send the money to, and they do. No more having to worry about due dates for credit card bills. Your payments are on time (or early, whichever you prefer) and no stamps to worry about. Go buy yourself a latte with the money you’ll be saving in stamps.

Tip #2: Don’t max out your credit cards: It’s best to stay below your actual credit card limit. For example, if you have a card with a $10,000 limit, it’s a safe bet to stay somewhere in the $6,000 - $8,000 range. If you need to make a rather large purchase then consider splitting the amount between two or more credit cards so that you don’t have one that’s totally maxed out. Lenders prefer to see that you know how to handle having such a high credit limit rather than running to the stores and buying the first things you see just so you can swipe your plastic.

Tip #3: Not so fast at closing those old accounts: I know some people find it rather daunting to have very old cards on their account, be it store credit cards that haven’t been used in a while or an old Discover card that’s been eating a hole through your wallet. But lenders don’t see it that way. Providing you have good credit, lenders want to see your aged credit as it tells them you can handle having plastic with a history of on-time payments and not over spending. So think twice about cancelling old cards, that Sears card from 1986 may just open the door for American Express to hand you their new platinum card.

It goes without saying that a good, clean credit score can hand you many opportunities of saving money, from getting a low rate on your mortgage refinance, getting a balance transfer credit card, to getting pre-approved on the bigger name credit card companies, having a strong leg to stand on speaks volumes for your repaying abilities.

Keeping abreast of your credit spending, monthly payments, and credit limits gets easier over time. So what are you waiting for? Log onto your bank’s website and start setting up an “easy pay” for your credit cards bills so you won’t have to worry about a late payment again. And leave the stamps in the dust.

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