How to maintain a good credit score

Credit score is the most important factor for getting a loan in USA. Whenever you wish to take loan you are asked for your credit score. A bad credit score is can be more than an embarrassment in such situation. So it is very important for every individual to keep a good credit score if he wishes to take loans.

How to maintain a good credit score

Before applying for a loan a person must understand the terms and conditions that are responsible for them to get the loan. In almost every situation it is important that your credit score is good. There are few ways for maintaining a good credit score:

1. Know the method for calculating credit score: First of all you need to find out how credit score is calculated. In other words you must work on the factors responsible for calculating credit score. Some important such factors are:

a. Credit Age

b. Level of debt

c. Recently avail credit

d. Previous payment records

2. Make payments for your bills on time: To maintain a good credit score it is always good to pay your bills on time. Pay all your bills on time including telephone, electricity, cards etc bills. This is multi beneficial for you. Firstly you don’t need to pay interest or fine due to late payment and secondly your credit score remains good.

3. Keep your cards bill low: It is advisable to try to keep credit card bills less than 30% of the actual limit. If your credit limit is $ 5,000 then try to use not more than $ 1,500 from that card. Even if you pay your bills on time, taking heavy credit may affect your credit score.

4. Keep a cap on debt amount: To maintain good credit score avoid taking heavy loans and debts. Take your time and ask experts for financial planning that is suitable to maintain good credit score.

5. Keep your cards alive: Try to keep your cards alive because if you wish to close your older cards then your use history will be removed and you will not get the benefit of using that old card.

6. Be watchful: Keep an eye on your credit score after regular time intervals. Don’t take it granted that if you are following every guidelines for good credit score, your score will go good.

From these guidelines one can maintain good credit score and consequently increase the chances of getting a loan easily.

Bad Credit Loans

Even if a person is having bad credit he may get loans from bad credit loan lenders. There are some money lenders who can help people with bad credit score and give loans to them.