Here are some tips that will help you maintain your credit score. First, avoid applying for new lines of credit and be sure to pay off any charge-offs and collection accounts. Keep your credit cards open to diversify your credit portfolio. This will keep you from accumulating large amounts of debt and will increase your credit score.
Avoid applying for new credit
Avoid applying for credit cards. The reason is that a new application could negatively affect your credit score. If you have existing debt, it is a bad idea to apply for credit lines. Instead, focus on paying off your existing cards and saving up for a large purchase. You will be able to get the best rates on credit cards, loans, and apartments for rent if you have good credit.
Diversify your credit portfolio
You should have a mixture of both installment and credit. The easiest way to use revolving credit is to open a credit card and pay it on time every month. In addition, try to charge only what you can afford to pay off each month so you won't accumulate interest on your balances. To prove that you can manage both installment loans and personal credit, you might consider getting a small personal loan.
Payment of collection or charge-offs
Although it is difficult to eliminate collection accounts and charge-offs, they are worth the effort. It will take time but smart planning will help you speed the process.
Credit cards should be kept open
It is important to have at least one credit-card account in order to maintain high credit scores. It means that you use it frequently, and not just because you like the privilege of opening it. Multiple accounts can be difficult to track and could increase fraud risk. While it is recommended to keep all your accounts open at all times, experts suggest that you only have one card.
Do not make any hard inquiries
You can lower your credit score by applying for too much credit cards or loans at once. While a single inquiry doesn't impact your score, it's best to avoid multiple inquiries during the year before applying for a mortgage or loan. Hard inquiries are recorded on your credit report for a year, and they stay there for two years. You should remember that not all credit decisions will be based on your credit score. Lenders may take into account other factors.
Avoid closing credit cards while you have balances on other cards
A high credit score is maintained by not closing credit cards with balances. This is because your credit score relies on reporting activity on your accounts. Credit invisibility is a condition where you cannot pay off a card you have closed. If you pay your annual fees on time, credit card companies may waive or convert fee-cards into no-fee ones.