How to Profit (and Keep) a High Credit Score

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Increase a low credit score can be a long and difficult process. Once you get that number within a satisfactory range, you deserve to be proud of all the hard work it took; but as soon as you stop worrying about how to to augment the score you start to wonder how to keep this. Here’s what you can do with that high score now that you have it, while making sure you keep it high.

How to maintain your credit score

Before you start considering everything you can do now that your credit score is in the green, you need to practice. keeping up there. You put a lot of effort here, and the on-time payments you made or the cards you paid for will continue to reflect in the score, but it can go down further.

For starters, never neglect a payment or a line of credit, even if one line has a better interest rate than the other. Treat them all equally, pay them all on time, and don’t let your guard down. Also keep old lines open, as the length of your credit history is about 10% of your overall score. It can be tempting to get rid of all of your credit cards to reduce the risk of misusing them, but it’s best to keep them and exercise restraint in their use.

That being said, have too much Open lines of credit aren’t good for your score either, so consolidate some of your cards if you can. Ask your bank for a balance transfer card. Once your score is good again, it shouldn’t be as hard to get one as it would have been when your score was lower. See? You already have new options. Take this as a good sign that all of your hard work was worth it here (and a reminder that you can’t afford to go back).

The most basic piece of advice is: don’t live outside your means. Credit cards don’t contain magic money; they are just money you haven’t spent Again.

What you need to know about your credit score

Even if your score is already high, you can still learn a thing or two about how this mysterious metric works.

“Get educated”, financial specialist B. Hernandez from HBP companies noted. “For example, there are three credit bureaus: Equifax, TransUnion, and Experian. These are private entities that use your public and private data to establish a score that assesses your ability to repay your debts. Credit companies, such as banks and credit card companies, use it to determine how much you can borrow and how much interest they can charge you. Scores can range from 300 to 850. Depending on the lender considering you for credit, a score below 600 is not excellent, while a score above 750 is considered excellent. Most Americans are between 600 and 700.

Staying aware of how your score works and fluctuates is essential to maintaining it and using it to its fullest potential. When you receive your credit report, always check it carefully for errors, which can to arrive. Knowing exactly what your report says – and making a hell of a living with customer service when it says something wrong – will help keep it within a solid range.

“You can call or write letters to the offices and ask them to remove the inaccurate information,” Hernandez said. “Inconsistencies are important because lenders will penalize you with refusals, extra verification steps, or higher rates because of inaccurate information. If they can’t prove that the wrong items are correct, they have 30 days to remove them. It’s the law.”

How to monitor your credit

As long as you stay on the lookout for scams, it’s worth considering the types of options you have for increasing and maintaining your score beyond checking it yourself. Some credit repair companies are more reputable than others, so find out who, exactly, can help you with any disputes you plan or identify what you should dispute before you do it.

Once you get the score where you need it to be, Hernandez said, “Sign up for a credit monitoring service. The basic free plans are with companies like Credit Karma, which is solid but limited, as it only shows two of the three reporting offices — Equifax and TransUnion. Most banks also have their own calculation of your credit score, but it’s usually best to get your reports directly from the bureaus themselves. i use IDnotify to get the reports. They display all three reports side by side, so it’s easy to spot any inaccuracies. They also tell you when your credit has been withdrawn, so it’s a good watchdog for possible identity theft. This option costs around $ 21 per month, but it’s worth its weight in gold because it shows you everything on your report exactly as shown on a monthly basis. “

Obviously, whether you pay off part of your credit card or buy a monitoring service, you have to spend money to make money. But once you do …

How to take advantage of good credit

What did you have in mind when upping your credit score? Wanted a new car, a house, or just to avoid phone calls reminding you to make the payment? Either way, now you can confidently, but carefully, move in the direction of your dreams.

“It’s time to take advantage of good credit,” Hernandez said. “Ways to do this include refinancing high interest credit cards or loan balances. A good rule of thumb is to get rid of toxic debt, or debt over 10%. Another way to do this is to use a mortgage to buy a home, which usually goes up in value over time. In general, use your good borrower status to get your financing as cheap as possible.

Remember everything you’ve learned on this credit building journey and enjoy some of the perks – responsibly, of course.

About Elizabeth Fisk

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