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How to Maintain a Good Credit Rating Throughout the Year February 28 2018 Posted by Colleen Macdonnell, AMP

If you want to make it easier to get an auto loan, mortgage, or new credit card account, you need to maintain a good credit score. It’s easy to do so, particularly if you follow the tips presented here.

Paying Your Bills on Time

Even a single late payment can affect your credit score adversely, so just imagine how much of an impact several late payments each month can have. Not only must you pay your credit card bills on time, but you must make prompt payments on all of your bills, including loans, mortgages, and utilities. If you pay your bills on time, you won’t have to worry about creating a negative effect on your score.

Fine Tuning Your Payment Amount

While it’s important to pay the minimum due on each bill to maintain a good credit rating, it’s even better to pay more than this amount. This strategy helps to keep your overall balance down, lowers the amount of interest that accrues on your bills, and assists in maintaining a user-friendly credit score.

Avoid Taking Out Too Much Credit

While lenders often make it easy for consumers to obtain new credit card accounts, this isn’t always a good idea. Each time you open up a new account, the activity is reflected on your credit history. As a result, your credit score might be reduced by a few points. If you continue to open up new cards, the cumulative effect might lower your score by a significant amount.

Spread Large Purchases Out

If you intend to make several large purchases, it is better to space them out rather than complete them all in the same month. A period of overspending can affect your credit score negatively.

Following the above tips can help to maintain a good credit rating. This should make it easier for you to obtain new forms of credit, such as installment loans, when you need them. Do your best to make timely payments, limit your spending, and only obtain credit cards that you intend to use.

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