You’ve worked hard to improve your credit score by checking your credit reports, paying your bills on time, not opening unnecessary credit accounts, and reducing the amount of debt you owe. And now that you have achieved your goal of improving your score, you need to take the rights steps to nurture it.
3 tips to help you maintain and nurture your score:
Be Selective When Closing Accounts
Closing an account isn’t always best for your credit score. In fact, it can hurt your score. Why? Because when you close an account, it’s usually removed from your credit report, and that means you lose the credit history with that account.
Keep Your Credit Utilization Below 30%
Your credit score may take a hit if your monthly statement balance is over 30% of your limit, even if you pay off your balance each month. Why? Because most likely, your statement balance has been reported to the credit bureaus.
Stay Current on Bills
When it comes to your credit score, payment history is one of the most important factors. Why? Because one of the key objectives of your credit score is to show lenders how likely you are to pay your debts, so pay your bills on time each month.
If you’re renting, did you know that you can nurture your credit score by having your on-time rent payments reported to the credit bureaus? Solutions like RentReporters can help you build and improve your score by reporting your payments to TransUnion.