Having a good credit score can really lift you in the eyes of financial tycoons as a person who is financially responsible and can be trusted with loans and debts.
On the other hand, if you have ever been careless with your financial responsibilities, it could be recorded in ChexSystems. ChexSystems is like the criminal record equivalent of the financial world and any credit card company or loan lender can easily see if your name is on there and refuse to help you in your time of need.
You can get out of ChexSystems using AAACreditGuide.com but it is quite a messy job so you are better off maintaining and improving your credit score on your own terms.
Keep an Eye on the Credit Card Balance
It is easy to max out your credit card when you are new to it and are just having it swiped all over town. But you must keep in mind that your debit/credit ratio must usually be 30% or below. Credit card companies are constantly watching your credit card transactions and a ratio greater than that can really tip them off and they might end up decreasing your credit score.
Pay off Your Balance as Fast as Possible
Needless to say that the lower your balance is, the easier it is to pay off. Paying off your balance in a timely and responsible manner is usually all you need to keep your credit score up. And this should not be limited to one credit card only, you must pay even the smallest amount of balance on every credit card you own.
Be Financially Responsible
You would not believe it but being financially responsible on a daily basis is also a great way to maintain or even improve your credit score. And I do not mean paying off of large loans and debts here, you can easily start small and do things like pay off all your utility bills and medical bills on time. You should also make it a point to return rented items as soon as possible. Yes, that includes movies and overdue library books too.
Pay off Your Debts
Everyone needs a loan at some point in their lives. It could be to buy a house, a car, go on vacation, anything. But credit card companies absolutely love it when you are financially responsible with your debts and make it a point to pay them off on time whenever possible.
Flaunt Your Paid Debts
Once you have a clear a debt that was stuck with you for a while, do not make a point of removing from your credit report. In fact, keep it on there for everyone you know to see. This will ensure that credit card companies are aware of your responsible behavior and you will hardly ever be refused a loan again.
Keep a Mix of Credit Cards
There is nothing wrong with owning one credit card and using it for all your transactions, but it is best when you have a couple. This way your maximum credit increases and your score goes up when you pay off the balance as well.
