Keep It Up! 3 Tips on Maintaining Your Credit Score

Using a credit card is the easy part.

Shop, swipe, pay later.

However, it's important to think about your credit score as you rack up dollars on your account. Saving money in your youth and growing your credit score are two of the most vital things you could ever do in your 20s, too. 

Do you know the best ways to keep your credit score as high as possible? Your credit score needs to be in good shape in order to pay for cars, buy houses, and start investing in making more money as you get older. 

These are some great tips on how to maintain a high credit score for years to come.

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1. Pay Your Bills On Time

This goes without saying, but paying your bills on time really factors into your credit score. 

You should keep an ongoing list of recurring payments, such as subscriptions to Netflix and Amazon, because you need to understand when your bills are due. 

Paying your bills on time will keep your credit score in perfect health. Even small library fines can stay on your record and ultimately mess up your credit score if you don't act quickly to fix it. 

Don't fall behind. Be sure to pay off your credit card before the amount piles up. 

2. Keep Old Credit Cards Open 

Another mistake that a lot of people make is closing old credit cards. It's great to finally completely pay off a credit card, but you should keep old credit cards open. 

Why is that? Even though you no longer owe money on one card, you should opt to keep the card open. This can help you maintain a positive credit score.

Closing that account will only hurt your credit score because you will lose the credit history you spent years building up while you used the card. 

3. How to Maintain a Healthy Credit Score? Don't Exceed Your Credit Limit

Want one more tip for maintaining a great credit score? Don't exceed your current credit limit. It may feel like a breeze racking up charges on your account, but you need to put things in perspective for yourself.

Eventually, you will need to pay back all of the money you owe! Credit cards can be dangerous if you do not spend correctly.

Your line of credit requires a lot of attention. Make consistent moves to pay off the amount you owe on each of your cards so you don't run into any major financial problems.

Looking for More Financial Advice?

These are just a few ways to learn how to maintain healthy credit. Have the confidence necessary to write down these tips so you can always remember how to maintain your credit score as you get older. 

You should talk with financial experts like us at CapFront if you are interested in making the best decisions possible for your small business, too. 

Contact us today at CapFront to discuss more information regarding your options for long-term or short-term borrowing. If you have time, check out our growing blog page where we add articles giving out even more financial advice.