If you’re preparing to apply for a home, auto, or student loan, you’ll want to be sure your credit report is in perfect condition and your debt is manageable. Follow these tips to avoid bad credit and maintain a flawless credit score.
1. Pay your bills on time.
It is the most vital and the easiest thing for you to do in order to prevent bad credit.
2. Don’t get too close to your credit card limits.
Let’s say if you have a credit card that has a limit of $4,000, don’t get up to $3,999. This can lower your score, even if you pay your monthly payment on time. It’s best to use 30 percent or less of your available credit.
3. Pay bills in full.
Minimum payments can lure you into a cycle of increasing debt, which can lead to bad credit. Use your credit rationally and be sure not to purchase anything that you can’t pay for at the end of the month.
4. Don’t apply for too much credit too quickly.
Credit is a good option to have, but obtaining is a bit tricky. If you apply for a couple of credit cards, a home equity line of credit, and a personal loan in a quick succession, lenders will start to wonder if you’re digging yourself too deeply into debt. Space out your requests for credit by six months or even a year to appease lenders and in order to keep your credit score high, says Jason Walowitz.
Feel free to know more from us by calling at 877-509-3160 and speaking to Jason Walowitz.