Maintain Good Credit


ADVERTISING DISCLOSURE: is an independent, advertising-supported web site. receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. has not reviewed all available credit card offers in the marketplace.

Maintain Good Credit

Updated: September 27, 2018

The content is accurate at the time of publication and is subject to change.

All through our lives, we move from one stage to another, and just like that we move from no credit to excellent scores in hopes of getting low interest rates and deals with good terms. When beginners apply for their first credit card, they want to get access to credit and build a solid payment history that will let them borrow money on favorable terms. But even if your FICO is almost perfect, it doesn't mean that you can sit back and relax. Good credit requires much work to be done and if you have good scores, you should know how to manage your credit responsibly without getting far into debt. Read more tips on how to maintain your good credit rating.

The cases are not rare when customers do not keep track of their spending and good scoring customers are no exception. Keeping track of your credit card transactions and reviewing your monthly credit statements is critically important. Not only can this habit allow you to prevent fraudulent activities on your account, but it also allows you to stay informed about some important credit changes that may occur from time to time.

A credit utilization ratio is one of the most important elements in a credit scoring formula. The more available credit you have at your disposal, the better. When carrying massive balances over time, you may be exposed to the problems associated with the utilization ratio. Even if you have good credit, your interest rates may be increased or your spending limit can be slashed. These practices are not that rare today, so you should keep a watchful eye on your credit utilization ratio.

The next way to maintain your good score rating is to keep an emergency fund. When you deal with credit, it's critically important to meet your financial obligations, i.e. to pay your bills on time or when they arrive. Big unexpected expenses may cost you dear in the long run. Medical bills or a job a rule we cannot foresee when these events happen. But we can create an emergency fund that will cover our losses when the emergency strikes.

One of the major rules in the credit card game is to pay what you owe. Once you fall behind with your monthly payments, you may wave good-bye to your good credit rating. Don't let this happen to you! Pay your bills when they arrive to avoid penalties associated with late payments. Try to pay more than the minimum. This will let you cut down the interest charges.

And finally, be sure to make your payments on time. For this, be organized with your bills. You can make a list of the bills you have due. Pay close attention to the payment due dates! You may contact your lender and move the payment due dates, if you find it difficult to pay your bills at this date of the month. Make it a personal rule to pay your bills when they arrive. You can mail your payment or schedule an online payment, so that you can rest assured that your payments arrive on time. Alternatively, you may take advantage of the automatic bill payments right from your checking account. It's a sure-fire method that will let you avoid late payment fees.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

Autumn 2018: Best Rewards Credit Cards for Thanksgiving Shopping

Autumn 2018: Best Rewards Credit Cards for Thanksgiving Shopping

Posted: November 8, 2018

Thanksgiving is coming, and whether you are hosting a meal or coming as a guest, your spendings are going to accumulate faster than you can notice. A holiday feast is a costly matter – each year Americans spend around $50 on a Thanksgiving ... Continue reading
The Best Credit Card for Earning Cash: Discover it® Cash Back

The Best Credit Card for Earning Cash: Discover it® Cash Back

Posted: November 2, 2018

You’ll have hundreds of dollars in your pocket in no time because you’ll earn money back on every purchase you make with this card. There are no restrictions on the amount of cash back you can get, and Discover even matches every penny you ... Continue reading
Top 5 Cards for Travel from Our Partners: Autumn 2018 – Expert’s Choice

Top 5 Cards for Travel from Our Partners: Autumn 2018 – Expert’s Choice

Posted: October 10, 2018

Nights are drawing out, the wind is colder every day and you already feel the lightest breath of winter on your face - autumn is here. Holidays are over, kids are back to school and all you are left with are hefty holiday bills that you ... Continue reading
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!