5 Ways To Protect A Good Credit Score

Credit has been tough to obtain these days, especially with a moribund real estate industry

, and a lingering recession thats continuing to do a lot of damage to investor and consumer confidence. Whether you want to buy a new home or car, or wish to avail of a personal or student loan, it pays to have a good credit score. A good credit score enables you to establish credit-worthiness, and allows you to get easy access to loans and other forms of financing, at lower interest rates. Here are five good ways for protecting a good credit score.

Maintain A Low Credit Card Balance

According to the Fair Isaac Corporation or FICO credit scoring system, having a low credit balance as compared to the amount of credit youre authorized, helps to make you a good credit risk. For instance, if you had a $60,000 credit limit on your credit card, and youve only so far used $6,000, or 10% of the credit limit, your balance must never go up to as much as 30 percent of your cards credit limit. Always make sure that you maintain a balanced proportion of used credit to available credit. The higher you credit balance goes, the more damage it will do to your credit score.

Pay All Your Bills On Time

According to credit experts, an estimated 35% of your credit score is based on payment history. By consistently paying your bills on time, whether they are credit cards or utility bills, insurance premiums, parking tickets and even library fines, your credit score will be further enhanced. Late bill or loan payments generally cut as much as 100 points from your credit score, which reduces your chances of availing loans and other forms of credit.

Do Not Co-Sign A Loan

Co-signing for loans perhaps may be one of the dumbest moves you can ever make. If ever youre lured or tempted into helping a family member or friend get a loan, your act of kindness may actually do a lot of damage to your credit score. Because you agreed to co-sign, if the other person is late in making payments, your credit report will get a major blow in credibility. Co-signing also means that the individual you were co-sign for was not able to get the loan without your signature. Always be wary of co-signing a loan, especially if you cannot guarantee that the person will be able to pay his or her payments on time.

Continually Keep Your Accounts Active

Most creditors and lending agencies would rather prefer to see a verifiable credit history on their clients. If you wish to pay all your outstanding balances, and close all your accounts, your creditors wont be able to determine if youre in good financial standing, or if youre paying your balances on time. However, dont get used to transferring your balances from one credit card to another, because this will only do nothing but slash off more points from your credit score.

by: Sutiyo Na

POST COMMENT

Bad Credit Cheap Payday Loans - Grants Instant Relief From Woes No Fax Payday Loans No Credit Cheque Required Unsecured Personal Loans Bad Credit No Problem Poor Credit Bank Accounts - Handles Funds Easily Short Term Loans No Credit Check - Small Term Finance Help For Urgency Payday Loans No Credit Check Avail Finance For Small Needs With No Hassle Bad Credit Score: Improve It Easily Vantage vs FICO Credit Scoring Know How to Stand Up For Your Score! How You Can Dispute Your Credit Score Effectively Payday Loans no Credit Check No Faxing - Instant Access to Urgent Funds Loans without Credit Checks - For Immediate Money Small Personal Loans Bad Credit – Needful Funds Minus Credit Check Payday Loans– No Reflection of Bad Credit