3 Ways to Stay on Top with your Credit Scores

Improving your credit score is a financial goal that is just as important as saving money, looking for new investments as well as paying off debts.

This is for the simple reason that your credit score is an indicator of your financial stability, and it really gives an edge in a number of aspects whether it’s a new job or if you want to buy a new home or car.

That said, here are 3 ways by which you can stay on top with your credit scores:

#1: Make your payments on time

35 percent of your credit score depends on your previous payment history. So, poor payment habits are bound to cause a downgrade of your score. For this reason, make sure you make the payments well in advance of your creditor’s deadline.

#2: Keep your credit card balances low

FICO scores, in particular, allocated 30 percent of your credit score based on the amounts owed on your credit card. A 10-percent credit utilization is ideal if you want to improve your credit score.

Despite the general assumption that credit card companies like consumers to spend highly, the people who do get penalized. Make sure that you never max out your credit cards if you want to maintain a high credit score.

#3: Avoid impulsive retail purchases

Impulsive retail purchases often cause poor credit scores. These hasty decision will cause you a lot of complication down the line. For that matter, be careful of solicitations at checkout counters where you are offered a discount for small items. It’s going to cost much later – so stay away.