How to Keep a Good Credit Score

Posted by Tom Wilkins on Mon 4th June 2007 at 10:29 AM, Filed in Credit Tips

Credit ratings can be tricky things. You often don’t know how their produced or calculated and yet we all rely on them in our every day lives.

By following some simple principles you can ensure that your ability to obtain credit is unfettered.

1. It is certainly worthwhile obtaining periodic credit checks on your self - you just never know what’s sitting on a database record with your name on it. From personal experience my credit score was affected by an unscrupulous individual I was renting accommodation with - even though my own financial records were and have been impeccable.

2. Where possible, set up a direct debit to pay off your card balance at the end of the month. It’s simply crazy paying double digit APR’s. Consistent and regular payments also count favourably on your credit score.

3. The era of having wallets stuffed full of credit cards is probably over. There is strong evidence to suggest that owning several credit cards may have a negative impact on your score.

4. Pushing right up to your credit limit each month can also have an impact.

This is all common sense, but how many of us follow these simple principles?

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