Your credit score is an asset that you want to guard carefully. Having good credit can help you to receive lower interest rates on credit cards and loans, while at the same time opening up more opportunities to make your money work for you. Here are three proven tips to follow so that your credit is not ruined:
Manage Your Credit Cards
The use of credit cards can spell disaster for many credit ratings. It is common for people to overextend themselves when using credit cards and end up in big financial trouble as the minimum payments continue to escalate. The maximum balance of your cards should be less than 30 percent of your total available credit to keep your score in check. Closing too many credit card accounts will also lower your available credit. The good news is that the responsible management of credit card debt can actually improve your credit rating. Learning how to manage credit cards is an invaluable tool when looking to protect your financial future.
Don’t Invest on Your Own
Tryon Investments explains that if you’ve never managed a high volume of money, it is very easy to make investment mistakes such as choosing bad stock. These kinds of mistakes can devastate your amount of money and drain it more quickly than you’d expect. This can turn what seemed like a great moment in your life into a disaster. High-risk investments have the potential of wrecking your credit because of the loss of available money. Lost money means difficulty paying bills and the potential to send your finances into a downward spiral. Because of this, it is recommended to enlist the help of an investment professional when looking to grow your money in the stock market.
Pay Your Bills on Time
The most significant credit score data point is the ability of the consumer to pay their bills on time. Prospective lenders are focused on the applicant’s ability to meet all of their monthly bill obligations without missing the due date. According to Fidelity Investments, consecutive missed payments will immediately raise the red flag and hurt your credit score. Although one single missed payment will not devalue your credit, a regular habit of paying bills late will snowball and negatively affect your score.
Protecting your credit score is a vital step in your goal to achieve long-term financial success. This credit rating will stay with you for a lifetime, making it critically important that you take steps to guard this number.
VP Credit Rescue is on a mission to help you restore and maintain your credit score. Check out our services to see exactly what we can do to rescue your credit!