How To Retain A Good Credit Score

Once you earn a good credit score, it is necessary that you maintain it. It is not easy to get a good rating but it is even difficult to keep holding on to it. In order to do so you need to study the factors that affect it. By identifying these you would be able to understand how exactly you could maintain this score and continue to get a grade that is even higher. Here are some ways to help you out; Click here for background check http://www.cbil.com.hk/en-us/backgroundCheck.

Settle the bills on time

You would definitely be surprised that the credit bureau has all information about you. Including whether or not you pay your bills on time. Paying bills on time without pending with assure you a good credit rating because it shows that you are capable of settling the utilities without defaulting. When you don’t pay them on time, the records of it that maintained are transferred to the bureau which provides this information to those interested. So next time you ask for a score you would definitely be able to identify the drop of score from AA to BB+.

Keep in track with your credit expense

It is always easier to get carried away with expenses when you aren’t paying in physical cash form. And just like how you procrastinate work you set your mind as well with the thought that you would be paying later. It is only at the end of the day or month that you realize you have a huge amount that is due. And when you aren’t able to pay it without delay then it affects your credit report. This leads to the drop in score. In order to avoid this from happening make sure to set a mental limit for your purchases done through the card. It is advised to make sure you spend only 30% of the credit allowance. This way you have a control over your due amount and you can pay without defaulting.

Control the debts

It is a natural thing nowadays that when you got no money, you borrow. It could be from a friend, a financial company or maybe even the bank. You may end up borrowing for different purposes. A vehicle loan, a student loan, a personal loan, a housing loan and all the other possible loans available. You might even lose track of whom you have got to pay and when you have to pay. Defaulting in payment especially towards financial institutes definitely have negative consequences that affect your score. So hold back on the constant urge to borrow. Try to finance them yourself. Think of the purpose and priority beforehand. This way you would be able to manage your debt better and maintain a good score. Besides what’s even better than not having to be worried about being chased by the loan sharks! It’s a win win! Consider the above facts and maintain the hardly earned score!