Repairing bad credit can be tough, but it can be easy to maintain it. If you already have bad credit then you should understand that there is no quick way to fix it. The best way to rebuilding credit score is to manage it responsibly in due course. The more you start identifying what goes into maintaining good credit rating, the easier it will be for you to follow it. There are several ways that will help you to maintain credit rating. They include-
Keep Checking Your Credit Report Regularly
You should keep a regular check on your credit report. Errors could end up on your credit report from nowhere. You can request a free copy of your credit report from any of the three credit bureaus to check for any such errors. The credit report will include every data used to calculate your credit score. You can always check it to make sure the amount you owe for each of your account is correct and there are no incorrect late payments listed for any of your accounts. If you find any error, you should report about it to the credit bureau.
Always Setup Payment Reminders
Paying all your bills on time is always recommended, be it your monthly power bill or credit card bills. There are some bills that never get reported to the credit bureaus if you pay on time, but they could end up on the credit report if for any reason you fall behind. So, the best way to maintain your credit rating is to always make your credit payments on time. To ensure you never forget your payments, you can set payment reminders through your online banking portals that will send text message or email, reminding you whenever your payment is due. You may also consider getting enrolled in automatic payment options, where the repayable amount gets debited from your bank account automatically.
Try To Reduce The Amount Of Debt You Owe
The best way to maintain your credit rating is to avoid getting more debt. Getting the amount of debt you owe reduced can be a satisfying achievement. The first step that you can take is stop using your credit cards. Make a list of the accounts that you have, check the recent statements and the amount of money that you owe and what the interest rates are. By categorizing all your debts it will be easy for you to come up with a solid payment plan.
Manage All Your Debt
The balance of your credit card is not the only thing that influences your credit score. Lines of credit and loan balances are other factors that will also impact your level of debt. Having too much debt can make it difficult for you to maintain your credit rating.
Never Close Old Credit Cards
Once you have closed your credit card, the issuer stops sending updates to the credit bureaus and the credit scoring formula puts less weight on such inactive accounts. The credit bureau will erase information about such closed account's history after 10 years from your credit report. So, if you had an old account, you will lose your credit history and your credit score will drop.
Stop Applying For New Credit
Your credit score gets hit every time you apply for new credit, be it a loan or a credit card. One single credit inquiry can cost you 10 percent of your credit score. Besides, opening a new credit account can lower the average credit age as well. So, to maintain your credit rating, open new credit cautiously.