Posted on: Sep. 09, 2017 in Credit Score

Once you achieve a high credit score, the last thing you want to do is lose it. Sometimes life throws you a curveball and your finances take a hit. You may find you credit score can take a nosedive after a job loss, illness, or other setback makes you unable to meet all your financial obligations. While you may not be able to control everything in times of trouble, you do want to stay on top of things when life is just humming along.


Here are the top three ways to maintain a good credit score.

  1. Keep credit utilization low. It’s best to use as little of your available credit at any time. Aim to keep utilization under 30%, but understand that under 10% is better. Not sure what that means? It’s simple. Add up your available credit from all credit cards, then multiply that number by .3 to get 30% or by .1 to get 10%. That should be your spending limit. It’s also best if you keep each individual card below 30% of its separate limit.
  2. Never miss a payment. By never, we mean not even once, because that’s all it takes for your score to take a hit. Miss multiple payments and your credit history and score will plummet. If you do miss a payment, it’s going to take time and an ultra-clean record to recover. It’s also important to note that if you’re late on a payment, you’ll likely incur fees and a higher interest rate. That means that it’ll be even harder to pay down a debt which could lead to additional missed payments.
  3. Monitor your credit report regularly. You’re entitled to one free report per year from each of the three major reporting bureaus, Equifax, TransUnion, and Experian. Make sure that everything is reported accurately. If you’ve had any negative information previously, verify that it drops off when it should, usually after seven years. Be on the lookout for fraudulent activity or accounts that don’t report closed when they should.

If you’re reading this and your credit score isn’t where you want it to be, we have good news! These same tips are three of the top ways to raise your score as well. Raising and maintaining a good or excellent credit score can help you get the loans and credit you need to buy the things you want. You’ll get better loan terms including interest rates and length of loans.

If you’re ready for a new car but your credit is keeping you from getting approved, CreditYes can help with our bad credit auto loan program! We can match you with a dealership in your area that will be with you every step of the way. Our service is fast and free. Fill out our secure online application and get behind the wheel of your next car today!