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Tips for Keeping Your Credit Score Healthy

John J Bowman Accountant - Credit Score

Using a credit card is deceptively dangerous. When the money you spend isn’t draining directly from your checking account, it’s easy to assume that you have more than you do – and to find yourself under a mounting pile of debt. Using a credit card irresponsibly can lead you into debt, poor credit, and financial troubles down the line.  Maintaining a healthy credit score is essential if you are interested in taking out loans or if you prefer having the ability to have a credit card in your name. There are a number of benefits to having a healthy credit score; a positive score makes securing an apartment, car, or even mortgage far easier than it would be otherwise. Follow these tips to keeping your credit score high regardless of how much income you earn or debt you carry.

 

Pay Your Credit Card Bills On Time

 

Whenever you make a purchase using your credit card it is imperative to pay your bill off in its entirety as soon as it arrives. Paying off your credit card in full each month is one of the quickest ways to build your credit without putting an overdue burden on yourself.

 

Maintain a Low Credit Card Balance

 

Keep a low credit card balance each month while always remaining self-aware of your current budget and expenses whenever you are making a purchase using your credit card. Maintaining a low credit card balance minimizes the risk of you being unable to pay your credit card balance in full once your bill arrives. The higher your credit card balance becomes, the more difficult it is likely to be to make full payments if you are on a set or limited income that does not fluctuate.

 

Use a Credit Report Monitoring Service

 

One of the best ways to protect your credit score and to keep it healthy at all times is to use a credit report monitoring service like Credit Karma. Credit report monitoring services provide you with a complete overview of your credit reports as well as your scores according to the top credit reporting agencies in the country. Using a credit report monitoring service is a way for you to ensure you are not missing any payments and that your credit score is exactly where you expect it to be before making any future financial decisions.

 

Taking the right steps to maintain a positive credit score is extremely useful when you want to improve the quality of your financial standing in the future. Whether you are currently in debt or building your credit score from the ground up, implementing the right tips along the way is essential to guarantee success.

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