How to Keep Your Credit Score High

Having a good credit score is essential
for many things in life, such as getting a loan or credit card, renting an apartment, and even getting a job. Here are some tips on how to keep your credit score high:

  1. Pay your bills on time: Late payments can significantly negatively impact your credit score. Set up automatic payments or reminders to avoid missing a payment deadline.
  2. Keep your credit utilization low: Credit utilization refers to the amount of credit you use compared to your credit limit. Keeping your credit utilization below 50% is ideal for maintaining a high credit score.
  3. Only apply for a little credit at a time: Applying for multiple credit cards or loans within a short period of time can hurt your credit score. It’s best to space out your applications over time.
  4. Monitor your credit report regularly: Check your credit report at least once a year to ensure there are no errors or fraudulent activity. You can request a free credit report from each central credit bureau (Equifax and TransUnion) once a year.
  5. Keep old credit accounts open: The length of your credit history is essential in determining your credit score. Keep your most aged credit accounts open, even if you no longer use them.
  6. Be cautious when closing credit accounts: Closing a credit account can impact your credit utilization and history. If you must close an account, consider closing your newest account instead of your oldest.
  7. Maintain a diverse credit mix: Having a combination of different types of credit (such as credit cards, car loans, and mortgages) can help improve your credit score. However, don’t take on more credit than you can handle.

By following these tips, you can maintain a high credit score and enjoy the benefits that come with it. Remember, building good credit takes time, so be patient and consistent in your efforts.

Thanks for reading, and we’ll see you next time!

If you need help in checking your credit score or get tips on how to maintain a good credit score, please book a call with one of your favourite Mortgage Strategy Managers using the following link.

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