Managing credit can be a daunting task, but it doesn’t have to be. Just think of it as another way for you and your financial institution to keep up with the state of your finances together. With a few simple tips and tricks, you can make sure you always stay on top of your credit score.
The first step is to make sure you’re paying bills on time every month. Late payments are one of the most common ways that people damage their credit, so try to set reminders or use technology like auto-payments to ensure nothing slips through the cracks. Regularly monitoring your accounts for any unusual activity also helps protect against fraud and identity theft—two other things that could hurt your score in a big way.
You should also be mindful of how much credit you are taking out, as well as the type of credit. Having multiple types of credit (like a loan, a credit card, and an installment plan) can actually help your score, but if overdone it could lead to financial trouble. Aim for having no more than three active lines of credit at any given time.
Finally, don’t forget to check in on your score every now and then! Setting aside some time each month or quarter to review your progress and make sure everything is up-to-date will ensure that you’re always on top of your finances—and ready to take advantage of opportunities when they come along. Managing credit doesn’t have to be an intimidating endeavor—it just takes a little bit of planning and foresight. Happy managing!