Keeping That Good Credit Keeping good credit sounds a lot easier than it really is. Good credit allows us as credit borrowers to receive better loans and lower interest rates. Also, employers understand the responsibility we have. It is best to always possess good credit. The process of removing bad credit marks can be very tough. It is better to control your spending and make on-time payments at all times in order to establish good credit and keep it.

When you do not pay your bills on time or are new to the credit world and have an insufficient credit history, you are labeled as having “poor” credit. This isn’t exactly fair to those who have never had a chance to get credit, but that is, unfortunately, part of life. How good credit is obtained in this situation is by obtaining a line of credit with the higher interest rate and paying on it properly.

How good credit is ruined is also by not paying attention to what is on your credit record in the first place. Cases of mistaken identity happen more often than you know so by doing due diligence on your credit report, you can make sure that your good credit is not ruined by someone else’s mistakes and hardships.

Say Goodbye to Damaged Credit Number one in keeping good credit is to pay off all debt. When you apply for a loan and have good credit, the lender is expecting you to pay back the loan in full with no late fees. It is very important for you to do just that. A loan normally gives you a decent amount of time to make payments and even add principal to the payments in order to pay it off on time. If a payment is not made or is late, this will damage your credit and lead you on the road to bad credit. Also make sure that your credit card balances are paid on time. Many times the late fees that accrue when credit card payments are not received on time can build your balance to the maximum amount in a blink of an eye. It is also easy to accrue over-the-limit fees quickly.

Late Payments on Credit Cards Late payments and negligence lead to bad credit. Keeping some type of credit open is always the best step to take. Leaving a credit card open with a small balance and paying it off quite regularly keeps your credit history alive and helps to elevate your score instead of it falling stagnate.

Keeping Your Credit Score High Making payments on time, maintaining some type of positive credit and acquiring no late fees is the best way to keep good credit. Once your credit turns bad, it is easy to throw in the towel and decide that it is better to let your credit go than to try and repair it. The best thing to do is to keep the good credit, don’t leave room for negative effects. Once you are accepted for one credit card, it is easy to get more, but the temptation behind these cards can be damaging . In order to keep good credit, trust yourself with making the right decision and think ahead. We all want to have the chance to be finically stable in the future. Keeping good credit can allow you the option to do this.