Maintaining Good Credit

Written by Lee Wyatt (last updated August 23, 2013)

Have you worked hard at building up your credit, and are worried that it could begin to go bad again? Well if you take a few simple steps, you can make sure that you are well on your way to maintaining good credit. To make the process as easy as possible for you, here are four of the most common (and effective) methods that you can use to ensure that your credit stays on the positive side.

  • What are your spending habits? Make sure that you know exactly what your spending habits are. By keeping track of this information you will know exactly how much money you have available at any given time, as well as what payments are still due, and when these payments will hit your account. Double check this information against your bank statement each month to ensure that you are not faced with any surprises.
  • Know your limits and stick to them. Credit cards and checking accounts typically have a spending limit to them, you need to know this and never exceed it. Going over these limits usually have some kind of financial penalty associated with it. For example, even if you go over your checking account by only five dollars, you can end up paying an additional $30 to $50 in overage fees. These fees will quickly add up, and just by themselves lead to some serious problems.
  • Watch your debt. As you are keeping track of your spending habits, make sure that you also keep track of what you owe, and to whom you owe it. This doesn't just refer to your credit card bills, but all your bills. One of the quickest ways to find yourself with some type of credit rating problem is to loose track of whom you currently owe money to. By keeping track of this information you can help ensure that you don't have a surprise charge creep up on you.
  • Pay what you owe quickly. Perhaps the single best way to maintain good credit is to pay what you owe as quickly as possible. Often with things like credit card bills, there are additional charges applied for an "existing balance." By paying these existing balances off as quickly as you can, you will help to reduce the total amount that you owe, while also showing that there is a positive action taking place on your account.

Author Bio

Lee Wyatt

Contributor of numerous Tips.Net articles, Lee Wyatt is quickly becoming a regular "Jack of all trades." He is currently an independent contractor specializing in writing and editing. Contact him today for all of your writing and editing needs! Click here to contact. ...


Choosing Winter Tires

Choosing winter tires is not as simple as just going down to you local tire store and buying the ones that look good. ...

Discover More

Moving and Storage Companies

Moving and storage companies are an absolute necessity when it comes time to move across the country, especially if you ...

Discover More

What is Crabgrass Preventer?

What is crabgrass preventer? Chances are pretty good that if you have ever had questions about the best methods for ...

Discover More
More Money Tips

Understanding Your Credit Score

A credit score is an important piece of information that is used by countless institutions to determine your "validity" ...

Discover More

Credit Counseling Agencies

Credit counseling agencies can be a great benefit to you and your financial path, especially if you don't exactly know ...

Discover More

Re-establishing Credit After Bankruptcy

Credit scores change daily based on the information provided to credit bureaus. After a bankruptcy it is important to ...

Discover More

If you would like to add an image to your comment (not an avatar, but an image to help in making the point of your comment), include the characters [{fig}] (all 7 characters, in the sequence shown) in your comment text. You’ll be prompted to upload your image when you submit the comment. Maximum image size is 6Mpixels. Images larger than 600px wide or 1000px tall will be reduced. Up to three images may be included in a comment. All images are subject to review. Commenting privileges may be curtailed if inappropriate images are posted.

What is 7 - 1?

There are currently no comments for this tip. (Be the first to leave your comment—just use the simple form above!)