A good credit score is the desirable goal of most of the potential borrowers. People, who managed to create a good credit score, followed the winning strategy but how to maintain it now? This question strikes most of the Americans as the bad score can become a barrier between an approval of the loan and refusal.
No matter do you apply for installment or payday loans, you still have to provide an outstanding proof of your creditworthiness. A good score is a real work and a strict self-discipline. Here are several ways to uphold a good score and remain a trustworthy candidacy.
Control Your Expenses
It happens that people with good score think that the situation can’t change and stop controlling their expenses. Here is a huge mistake – a suitable three-digit number doesn’t mean that you can relax and don’t keep the track of your expenses.
Consider Your Credit Limit
While making purchases with your credit card, don’t exceed your credit limit. The available limit is the amount of money, which is left when you deduct credit limit from the outstanding balance. Experts recommend card holders not to exceed more than 20% of the annual income that is left after taxes and more than 10% of the monthly credit cards payments.
Save on Emergency Cases
Experts recommend saving approximately 15% of the monthly salary on an emergency fund that will help to cope with all unpredictable expenses and financial difficulties. It will help you to avoid applying for loans and save your good credit score.
Don’t Skip Monthly Payments
This tip is especially crucial for the good credit score maintaining! Develop the good habit to pay off the installments on time (you might want to use an installment loan calculator for that) – it’s the main link in the formula to success. A well-developed self-discipline is a crucial thing for every card holder.
Manage Your Bills
If you have more than one bill to pay off monthly, then you definitely have to keep the track of them and put them in one place. The best way would be to join all bills in one debt – it will help to pay off all the debts on time and probably reduce the interests!
Make It Automatic
Lots of banks offer the handy option – you have a chance to launch an automatic tool that will charge the needed amount of money monthly. This way you will definitely forget about the delays as everything is automated! More and more borrowers choose this option!
Keep in Touch with Lending Party
Don’t forget that you always can fix the issues with your lenders – most of them are ready to consider your financial circumstances. Furthermore, people with good credit scores will more likely meet their goals as the reputation speaks louder than eloquence.
Moreover, if you change your home address or any other contact information, apply to your lender and inform him!