Updated: Nov 24, 2021
KNOW YOUR SCORES
#1 This may sound simple but checking your FICO Scores regularly will help your decision making when it is time to apply for new credit accounts. It is easy to get confused as to where to find your FICO scores. Not all credit monitoring services provides FICO scores. If you are using credit karma for example, you are being shown Vantage Scores.
NEVER MISS A PAYMENT, No Exceptions
#2 Our clients hear this one often. Payment history affects your FICO scores the most out of any other factors. Your credit reports track payment history for the prior 24 months.
LOWER YOUR TOTAL DEBT OUTSTANDING
#3 Resolve your small balance collection accounts quickly! Stop carrying balances from one month to the next month, to the next month etc.. Allocate more to your monthly debt payments when you can to eliminate them quicker. Credit Network brings you the tools and the debt management strategy to get the ball rolling, so that you can begin to build a foundation of wealth.
DEVELOP A SOLID CREDIT MIX-IN-USE
#4 Aim for balance in your credit report, not having enough credit history can make it difficult to approve you for new credit. The mix of active accounts in-use, in an individual’s credit report will have a lasting impact on just how high your scores can go. For example, if you only have one credit card that you use for things consider a second credit card for something specific such as a travel credit card that you specifically use to book flights and hotels. Also this one is not limited to just credit cards, having a balanced credit report means that you have a variety of credit accounts that are not closed or in a negative status that fall into the categories of: Credit Card Accounts, Real Estate Accounts, Auto Loans or personal loans.
AVOID UNECCESARY HARD INQUIRIES OR JUST TOO MANY
#5 If you know your credit needs work, or if you have been denied credit, stop applying. Hard inquiries affect your FICO scores every time you apply for new credit. If you were denied and you continue to apply this will result in more loss of points. Keep hard inquiries to a minimum and apply for new credit when you feel most confident that you will get approved. Hard inquiries impact your FICO scores by approximately 5-10 points per report pulled and you don’t get these points back for 25 months after the date of the inquiry was made.
We hope you find these 5 Ways to Maintain Good Credit helpful and insightful for more information about how Credit Network of America, can assist you in reaching new heights with your scores Contact Us Today, our Credit Management Specialists are eager to help, and subscribe to our Blog Pro for Exclusive Articles and member level content!
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-Credit Network Editorial Team