9.19.19 16

10 Ways To Ensure Your Credit Is Good

This post is sponsored by Lexington Law. All opinions are my own. Thank you for supporting the brands that support this blog. 

Now that you know what credit is and why it’s so important you may be wondering how to ensure your credit is good? What are the simply daily, monthly, yearly actions you can take to ensure you always have good credit? Today I am going to lay those out for you so you can stay on top of it.

10 Ways To Ensure Your Credit Is Good

Paying Balances Each Month: This is something I only wish I had done from the beginning. But pay off your credit card balances each month. Don’t carry over a balance. It’s just not worth it. Paying your card off every month shows you aren’t spending beyond your means.

Not Making Late Payments: I will go into auto payments more below but DO NOT MAKE LATE PAYMENTS! I always have bills scheduled to deduct either on their due date or a day or two before. I just think it’s easier and gives you so much less stress. Late payments can really hurt your credit especially if they are VERY late payments.

Going Over Your Credit With A Professional: This could be a financial planner or a service like Lexington Law. If your credit score is low or needs improvement having someone go over it with you and figure out what’s wrong is key. You want to do this before it’s too late. Don’t wait until you need to be approved for a loan or mortgage.

Disputing False Claims On Your Credit: This is another great thing Lexington Law can help you with. If you have a ton of stuff on your report that is not your fault or false they can go in and help you dispute these things. I can’t tell you how much disputing a false claim and having it removed can help your credit.

Not Opening Too Many Accounts At Once: Such a mistake I see made by young people especially. Once you get approved for one credit card you think “oh great I will open more!” Well, too many hard inquiries (what happens when your credit is pulled) can really ding your score. These can stay on your report for around 12 months so you don’t want to have more than one or two at a time. Here is some in-depth info about hard inquiries.

Don’t Max Out Cards: DO NOT MAX OUT YOUR CARDS! Credit utilization is a huge factor in your credit score. This means the ratio of credit you have to credit used. Maxing out a card can really hurt this! Keeping your credit utilization under 10% is ideal.

Keep Up To Date On Other Bills: I know I talk about credit cards a lot but other bills are just as important. Things like medical bills, tickets, student loans, mortgage payments, etc. Most of these can be done on auto-pay (more below) but one off payments can easily fall through the cracks. My tip is to pay them as soon as they come! Don’t shove in a drawer, or let them pile up on a counter.

Set Autopay up: Autopay is my very favorite tool in the world of bills. Who has time to remember to sit down monthly and pay bills? I don’t! We have pretty much everything on auto-pay that can be! Credit cards, mortgage, utility bills, student loans, car payments, etc. Any recurring payment should be on autopay if there’s a way to do it! This will save you so much time and so many headaches! It’s also a great way to ensure you don’t have late payments.

Compare Rates Before: Before you open a new account compare the rates for similar accounts. Sure maybe that one credit card has awesome miles or rewards but a super low interest rate is key!

Stay On Top Of Your Finances: This is the most important! Know what’s going on with your finances. Double check that bills are on autopay, make sure payments are being made, make sure balances are paid off, make sure you are looking at credit cards and no charges have been made that you didn’t make, make sure there aren’t accounts open in your name that you didn’t open etc. This is why Lexington Law is so wonderful! If any of these negative things are going on they can help! They can make sure you are on the right track and getting negative items removed.

Ensuring your credit is good is only going to help you in the long run. These 10 things are such great habits to get into at any stage in your life! Having one account or 50 you need to stay on top of things!

How do you ensure your credit is good?

 

Leave a Comment

16 Comments

  1. I think the system works a little differently where I live! Finances always confuse me so, haha! ❤️✨

    Charmaine Ng | Architecture & Lifestyle Blog
    http://charmainenyw.com

    Published 9.19.19
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  2. Lina Melo wrote:

    Managing finances is so hard and difficult sometimes! These are such great tips to ensure credit is good

    Published 9.19.19
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  3. Kristine Nicole Alessandra wrote:

    Since that day that I totally gave up my credit cards, my life has been easier! I only pay in cash now. If I don’t have the money, then I don’t buy. It has done wonders for me and we have achieved a healthy financial standing.

    Published 9.19.19
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  4. This is so helpful for me as a recently graduated adult!! Def keeping these tips in mind for staying on top of my credit!

    Published 9.19.19
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  5. Financial management is very tricky – if you do not exactly know how to keep it right you might end up in huge debt.. thanks for the detailed info

    Published 9.19.19
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  6. These tips are invaluable. For any big idea the score is crucial. House or a car – we need to mind the credit score.

    Published 9.20.19
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  7. Your credit score is so important! We aim to keep all of our credit cards paid off or below 5%.

    Published 9.20.19
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  8. Stephanie wrote:

    I do almost all of this already. Another tip is to make sure that you use your cards at least once per year. I have a few that I opened in college (hello Victoria’s Secret) so they are my oldest. I don’t use them often, but length of credit matters, too. So I make sure to purchase something, even if it is only $5-10, each year to keep it active. I used to be an account holder on my dad’s card, but since he has his own mechanics business his card is always on the higher end of percentage used (car parts are expensive) and it was hurting my credit. I got myself taken off his card!

    Published 9.20.19
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  9. Chad wrote:

    I was always told by my friends that i needed to always maintain a good credit score but no one ever told me how lol…This is really great, thank you.

    Published 9.20.19
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  10. My husband and I are hardcore believers in not carrying balances and auto pay! Living within our means isn’t always fun, but so necessary to help us meet bigger goals.

    Published 9.20.19
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  11. Most of what we do to keep our credit score solid is encapsulated in the first few tips in this post. We pay off our balance every. single. month. on. time. No exceptions. (same for all the other bills) If we don’t have the money to pay off the credit card bill, we don’t use the card. Oh, and we never buy something big like a car (or computer or whatever) without having the money in the bank to pay for it upfront. This means a lot of saving over time, and sometimes waiting til we have enough saved before we can upgrade. But it is SO nice that the only ongoing debt/monthly payments we have = for our home.

    Published 9.20.19
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  12. Bree wrote:

    This advice is stellar. It’s so important to have good credit and these tips are great ways to do so!

    Published 9.20.19
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  13. I love reading posts like this, great advice!

    Beauty & Colour | Vegan Fashion + Lifestyle Blog

    Published 9.21.19
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  14. We were told to open ten to twelve accounts immediately when we moved to the states and I couldn’t believe that was professional advice given… seems like a bad idea to do that all at once instead over a period of a year or three! Talking about credit is so important.

    Published 9.21.19
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  15. Caroline wrote:

    Thanks for the advice!

    Published 9.22.19
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