How to Keep Your Credit Score High

Consumer credit scores will automatically affect their mortgage refinances. There is a direct correlation between the interest rate programs for which you are eligible and your credit score. To help improve your chances of receiving preferable loan terms, aim to boost your score beyond 700. Be sure to check your credit before applying for a mortgage loan refinance.

• Pay your bills on time: The most important thing you can do every day and month is pay your bills on time. More than 30 percent of your credit score is related to your payment history. If you routinely pay your bills on time, your credit will go up. Conversely, if you fail to make payments or make payments late, your credit will suffer. If you are concerned that you can't make a payment, call your creditor and work out an arrangement. You may be able to keep your account in good standing.
• Borrow only what is necessary: This might seem obvious, but thousands of Americans are suffering from poor credit ratings because they borrowed beyond their means. If you're buying a car, buy what you can afford (and not what you want, or what you can qualify for). Think seriously about big purchases and what is affordable within reason. You might not be able to afford a navigation system on your next car, but you also will pay it off faster and improve your credit as a result.
• Keep your balances under control: Your credit is there if you need it, but don't think that you're supposed to use all of your allowable credit. In fact, it can hurt you if you keep high balances on your revolving (credit card) accounts. As a rule of thumb, try not to carry a balance on more than 30 percent of your available revolving credit accounts. This means if you have a card with $10,000 available, don't carry more than $3,000 from month to month. The credit bureaus reward you for using cards, but will penalize you if it seems that you're incapable of managing the debt.
• Resist the urge to take out new credit: It might sound like a great idea to buy a new TV with a new credit card offered by an electronics retailer. But if you do this for your TV, you'll probably do it for another purchase. And another. And pretty soon, you'll have opened multiple credit accounts, which doesn't reflect well on you as far as the credit bureaus are concerned. You should only apply for new credit when you need it - when you buy a home, or a car, or if you need another credit card. Try to keep the number of accounts you have to a minimum.
• Keep your accounts open: Think of your credit score as a way of banks measuring how dependable you are. If you keep your accounts open for years and years, you will be considered more reliable and consistent than consumers who haphazardly open and close accounts. Your credit score will drop if you keep opening and closing accounts. If you have a credit card and you like its benefits, you should keep it for as long as possible.