How to Maintain a Good Credit Rating
Maintaining a good credit rating is not always as difficult as most people may think. In fact, a good credit rating normally comes with good personal money management skills, especially as it relates to managing the outstanding debt that the person has made or will make over time. Therefore, it is important for everyone to know these two common keys to keeping a good credit rating. It is also useful if you keep contact with a credit counselor at Dr Credit.
#1 – Borrow Money Only When its Essential
Sometimes people borrow money for things that they really do not need. When this occurs, the person may have a difficult time paying it back. Therefore, there is an added expense on their personal budgets that may eventually become unnecessary credit risks to their good credit score. For instance, the individual may borrow a money to buy all new furniture for their home because they simply want to change the looks. While this may be items that they desire to have, they are not really necessary, and can be a very costly decision. To avoid these problems, people should only make loans for unexpected expenses that cannot be avoided. These loans should also only be for the amounts that they really need and not beyond.
#2- Pay bills on Due Date or Before
When an individual checks their credit score and the score is good, people should protect their ratings proactively if they want to keep it. One of the best ways to protect the score is to pay all of their bills on time or before their monthly due date so that they will not be late. This is because late payments will not only look bad on the person’s credit history when a potential creditor is reviewing the history, but will also reduce the credit rating.