Maintaining a clean credit history is as important as building it up. You would not want to run into a state of bankruptcy. An awareness of the current state of your credit summary will ensure that you are always on the safe side. Since all your future loans depend largely on your credit score, it is advisable that you pay attention to the below points. These are simple yet noteworthy points every credit card holder must keep in mind.
- Timely Bill Payment:
Paying your bills timely will help you a lot in maintaining a good credit history. On the other hand, carelessness in payment may be harmful. It will affect your interest rates and any future credit benefits. It may affect your business financing as well. However, all this can be simply avoided by managing your time to pay bills. In case you find it hard to keep a track of your credit scores and bills, leave it to your calendar. Spare out one day of the month only to go through your bills once and to complete payments. Chose few days before the due date, this would also give you some time to sort out any discrepancies in the credit summary.
- Handling too many cards is a pain:
Ordering too many credit cards will only increase hassle. Not only is it difficult for you to handle and keep a track of, the credit score is also affected. It is advisable to maintain few cards and build good credit history on those. This generates more trust and a stronger relationship with the lenders. Over time you will observe that the credit score grows well when your bills are spread over fewer cards. Managing them is also much easier. Make sure that you do not keep shifting your balances from one card to another. It is advisable to maintain minimum balances in each card, even if lower interest rates in other cards lure you.
- Maintain small balances:
Credit card companies get nervous when they observe that you are stretching against limits constantly. It is better to spread your expenses on few cards rather than touching the limit constantly. Do not burden one card to reach its limit. Lack of money on one card may give the impression to the credit bureaus that you cannot pay bills. In order to maintain balance, you might also consider borrowing if necessary.