Maintaining a Good Credit Score

It is important for you to maintain a high credit score if you have plans to apply for loans or buy a large-ticket item, such as a car or house. Creditors, on the whole, are not willing to give large sums of money to individuals who appear to be unreliable in paying back the money. Individuals with low credit scores, therefore, are considered to be risky investments. Most often, they will be denied loans.

Once you have good credit, however, it is relatively easy to maintain a stable score. There are several simple steps you can take on a daily, monthly, and yearly basis that will ensure your credit score remains high and you are given the financial freedom to receive loans and make large purchases.

The following steps will take a certain amount of diligence, but they are easy to achieve if you are determined to maintain good credit:

• Review your monthly spending routine, so that you know what your limit is and what purchases you can reasonably cut out of your life
• Use your credit cards regularly, but don’t spend outside of your limits
• Make sure you pay all of your bills off on time
• Don’t close old credit accounts – this can actually harm your credit rating

Remember: if you want financial freedom, then it is also your responsibility to take these steps toward maintaining a good credit score.

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