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Making Sure That Your Credit Score Stays High

Your credit score is the number that is used by lenders and creditors in order to decide whether to grant you credit. Having a high credit score will make you more likely to approved for credit at the best rates, while a low credit score will result in you being less likely to be approved for credit. When people use comparison sites such as GoBear to find the credit cards that they want, their primary concern is often based on how to ensure that they can keep their credit score high. With this in mind, we have provided a guide that could help you maintain a high credit score, giving you the best opportunities when it comes to lending from creditors.

Paying All Your Bills on Time
An easy way for your credit score to start plummeting is by not paying all of your bills on time. When you cannot pay bills, this gets reported to credit bureaus who will put this on your credit report, which of course will damage your credit score, making potential lenders and creditors less likely to approve your applications.
However, when you are easily paying your bills on time, the chances are that your credit score will begin to rise. Since 35% of your credit score is based on credit card payments, completing these payments without any drama is what is most likely to aid your credit score the most. Other bills that tend to have an impact on your credit score include personal and student loans, as well as mortgage payments and auto loans.

Using Your Credit Card Sensibly
Your credit card can be of great use to you and can help you out massively in terms of your finances. However, as soon as you start using your credit card recklessly at all, you run the risk of doing damage to your credit score. People often begin struggling to make their credit card payments due to the fact that they are using their credit card too much; and as soon as this happens, the chances of your credit score taking a hit get higher and higher.
One way of maintaining a sensible use of your credit card is by keeping your credit card balance low in relation to your credit limit. Many experts suggest leaving your credit card balance below 30% of your credit limit in order to maintain a good credit score, while an even lower balance should help your credit score even more. You may want to think about ensuring that your balances are reduced below 30% at the end of every billing month so that your credit report looks more favorable to anybody that reads it.

Keeping Tabs on Your Credit Report

Of course, nobody wants to constantly feel bogged down by matters regarding credit, but even if you are being completely sensible financially and making all of your payments on time, it is important to keep one eye on your credit report. There could be errors in your credit report that lead to your credit score falling even though you’ve done nothing wrong, and by not looking through your credit report, these errors could go unnoticed.
Matters of fraud and theft could also lead to your credit suffering even without your involvement. Credit card fraud is a common crime that can potentially affect anybody, and the reason why some fraudsters can sometimes get away with it is because victims are not regularly checking their credit report for any unusual activity. This is another way in which your credit score can suffer without you even putting a foot wrong in terms of your credit.

Keeping on top of your credit score is one of the most important financial responsibilities that you have, so it is vitally important that you do your utmost to ensure that it stays as high as possible. A bad credit rating can potentially have serious implications regarding your ability to be approved for credit in the future, so it is best to avoid letting it fall.

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