In the world of credit scoring we all strive for lucky number 700. However, most of us who get there quickly discover that maintaining it is not as easy as it looks. There are several factors that determine the credit range that you qualify for. Things like credit mixes, payment history, and age of accounts can all have different levels of importance in evaluating your profile. For example if you have one credit card with a $500 limit but pay on time and get a higher score than someone with a longer history but several overlimit accounts and past due balances.
Even though there may be various algorithms and factors at play, you can still take the following tips to keep your score in decent shape. The most important thing to do is make on-time payments. Most lenders will be hesitant to give you a card if you can’t afford the first one. Another way to build good credit is by getting newer cards or accounts slowly. This is also an excellent way to earn some positive payment history before adding on new debts. When you find that your credit score is beginning to climb and getting closer to the good or excellent bracket, be careful not to deviate from your payment habits and ruin your hard work. Building good credit is easy but staying there is the hard part. Just make sure that you don’t fall into the “free money isn’t debt” mindset and you will find that you are able to join the 700 club in no time.
