Maintaining a healthy credit score is about more than paying your bills on time and not going over your credit limit. It’s also about not having too many credit cards and paying the balances in full. Plus, it’s about not closing too many credit card accounts at one time or opening too many credit card accounts at the same time.
Maintaining a healthy credit score also includes the need to take the initiative to monitor your credit report whether you do it on your own or hire a credit monitoring company to do it for you. One of the best reasons to monitor your credit score is to prevent identity theft. Not only do consumers need to watch out for strangers who might steal their credit information, but they also need to watch out for family members, coworkers, and friends who might be in financial trouble and tempted to steal their credit information.
Additionally, family members and friends might ask to borrow credit cards when shopping together with you. It’s easy to fall into the trap of saying “yes” and allowing these individuals to borrow your credit. Unfortunately, this can turn out to be an irresponsible act on your part since you have no guarantee that they will repay the debt. What happens to your credit if the individual who borrows your credit card does not repay the debt and you cannot afford to do so on your own?
It’s a lot easier to destroy a healthy credit score than it is to repair one that has become damaged. Using the account responsibly might be a bit of a challenge at times, but it is certainly easier than trying to crawl out from a mountain of debt. This is especially true since bad credit practices such as paying a bill late or defaulting on an account remain on your credit history for several months.
If consumers can maintain healthy credit scores, it can lead the way to good interest rates, affordable mortgages, employment opportunities, and better credit opportunities. In general, paying your credit card bills in full with at least the minimum amount due as the payment will allow a consumer to maintain a healthy credit score.