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Your credit score plays a key role in your overall financial health. In fact, a good credit score saves money, provides various savings and benefits, and gives you access to loans and credit. Today we’re going to provide a few actionable tips to help you maintain a good credit score.

 

Pay All of Your Bills On-Time

 

One of the simplest and best things you can do to maintain a good credit score is to pay all of your bills on time.

 

Ultimately, you want to build up a positive track record that shows you are a responsible person who has built a solid history of on-time payments.

 

In fact, two major credit score companies, FICO and VantageScore, pay special attention to how well you pay your bills when determining your score. This doesn’t just extend to credit card bills, either. It’s important that you pay any debt in your name on time to maintain a good credit score.

 

Don’t Go Over 30 Percent of Available Credit

 

Another easy way to manage your credit score is ensuring that you stay under 30 percent of your available credit.

 

Too often, individuals will max out their credit cards, believing that as long as they pay on time, their score will remain intact. While paying your bills is certainly important, you won’t see its effects if all of your cards are at the max.

 

Your credit utilization is just as important. With that said, be mindful of how often you use your credit cards and develop a habit of paying off your balance every time you use it to keep your utilization score low.

 

Pay Attention to Other Influences

 

There are various other factors that contribute to your credit score, and it’s going to be important to pay attention to all of them if you expect to maintain a good score. Here are a few factors to consider:

 

  • The type of credit accounts you have
  • The average age of your accounts
  • Any recent credit applications
  • Total balances and debts

 

Managing your credit score is the first step to financial freedom. If you want to maintain a good score, be sure to pay all of your bills on time, keep track of your credit utilization, and manage all other factors that contribute to your credit score.