As we know, maintain an excellent credit rating (750 +) because this score is important and it is used by financial institutions, lenders and insurance companies to check their risk to lend you money. Your credit will be systematically consulted if you want to take out a mortgage, get a credit card if you want to rent an apartment, get a checking account, buy a car, and even get a cell phone (not prepaid). In short, the opportunities are endless!
Here’s what you should do: Ways to build credit
Note that if you have late payments to the point that collection agency contacts you; it will be recorded in your file for six or seven years, even if you pay your bill then in its entirety. Do yourself a favor and avoid long term you get there. In my opinion, being in a category that has not paid its cell phone bill is an aberration.
Keep your borrowed amount less than 50% of your total available credit
Avoid making multiple credit applications in a short period of time on various articles. Indeed, a series of separate investigations from an electronics store, a car dealership and a lender will be more damaging to your score if you are shopping for a particular purchase and are upgrading several investigations in the same type of lender.
If you want to cancel your credit cards to reduce your potential debt capacity, do not cancel one that has more history because it’s among ways to build credit.
Do not apply for credit you do not intend to use. Get an additional 10% when you open this new retail store card can be very tempting, but the little money you’ll save may be negligible if you get several new accounts, as it will reduce your credit score invariably.
Keep old accounts open
The credit period is another important factor, so it may be to your advantage to keep old accounts open properly. Anyway these accounts will not mar your credit.
Avoid debt consolidation loans
If maintaining a high credit score is your priority, avoid debt consolidation loans. Indeed, in this case your total available credit decreases but the total borrowed remained the same. Obviously if debt consolidation is the best solution for your situation, you should not hesitate.