Most Important Things to Protect Your Credit Score

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It might seem like an uphill battle but mending and maintain your credit score in a high position is doable. There are certain things that you must be aware of if you want to succeed, and some of them might even surprise you through their simplicity. However, even though some things might be simple, they are very effective so keep an open mind. If you’d also like to check out more about credit, you can read reviews here.

What goes in?

The first step is to evaluate the situation and determine who your enemies are exactly. So, that being sad, what goes in your credit score exactly? What is behind the low score you have or are desperately trying to avoid? These are good questions and the answers should also be pretty good if you want to succeed in this endeavor. Many things like payment history or credit debt make up the total number resulting at the end of a pretty intricate calculation string. If you know all the players, you will understand the game a lot better so get yourself up to speed on every single thing that is taken into account when a credit score is calculated.

Are you paying bills? Are you paying on time?

Sometimes it’s easy to allow ourselves to believe that a bill can wait just a while longer, even if that means not paying it on time. That’s not the case in most situations and not paying your bills in time results in having your credit score drop a lot. It’s not just the credit card bill either, but also loans and any other bills you might have that need to be paid. Falling behind on paying bills almost always results in a negative effect on your credit score. No matter how small the fee, keep in mind that every single bill you have to pay can end up on your credit report and that’s not a risk worth taking if you really want to improve your score or maintain its current level, without it dropping. AAACreditGuide.com explains what a bad credit score is.

Are you maxing out your credit cards?

This might come off as a weird thing, but spending only what you can afford is still not good enough. Just because you stopped spending before exceeding your card’s limits doesn’t make you a role model citizen or prevent you from dropping in credit score. That’s because reports get sent back before new statements come in and that means you are going to be reported to have spent the entirety of your credit so paying in full afterward won’t even matter thanks to how the system works. Instead of spending everything you’re allowed to, you should focus on maintaining a spending limit that doesn’t exceed 30% of your credit. This will ensure that reports will be gentler and your score won’t be so heavily affected.

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