Strategies for Good Credit
Always pay your bills on time. This is the single best way you can show creditors that you’ll be responsible with your money.
Build up your savings account. It’s good to make regular deposits, no matter how small. While this won’t appear on your credit report, lenders like to see a consistent savings pattern.
Be particular about your credit cards and loans. Apply only for the ones you really want and keep them for a long time. Each time you apply for credit, your credit score takes a small hit. To maintain good credit, you should open new lines of credit sparingly.
Maintain a low balance. It’s better for your credit score to maintain a low balance on one card and pay it off each month than to have no balance at all!
Watch your credit report. Just because you do everything right with your credit doesn’t mean everyone else will. Errors could end up on your credit report leading to a drop in your credit score. Identity theft and credit card fraud can also lead to inaccurate information on your credit report. Checking your credit report throughout the year lets you detect these mistakes sooner so you can correct them and maintain a good credit score.