AN expert explained the hard and fast rules that kept his credit score in the 800s even amid financial difficulties.
Financial expert Kaz Weida has several tips to help maintain an exceptionally high credit score for more than a decade.
Although your credit is determined by several factors, Weida admitted CNET that there have been certain lifestyle changes that have helped keep your credit score high.
BALANCE YOUR CREDIT
One thing she mentions is keeping an eye on your credit cards.
When people increase their debt or cancel their credit cards, it can substantially affect their usage.
To avoid affecting your credit, keep some cards open and active, even if you don’t use them regularly.
Read more about credit scores
AVOID BEING ‘POOR IN THE HOUSE’
When looking for a home, Weida recommends choosing a home that won’t leave you feeling “poor.”
This can be defined as anyone who is renting or has a mortgage that represents more than 30% of their gross income.
She admitted this wasn’t feasible for everyone, but it was something she incorporated into her own financial plans.
“In our case, this meant living in our “starter” house in a less-than-desirable neighborhood for much longer than we had planned,” she wrote on CNET.
“We also had to wait until the housing market recovered and our equity was stable before we considered moving.”
MANAGE YOUR DEBT
Managing debt was also a substantial way to keep your credit score high.
High-interest debt can have a huge impact on your finances and make it much more difficult to achieve your goals.
“For my family, as our credit slowly recovered, we did some balance transfers and consolidated debt at a lower interest rate,” she said.
“We then use all of our spare cash to pay off credit card debt slowly over several years.”
She recommends that people prioritize debts with the highest interest rate and try to pay them off as quickly as possible.
KEEP YOUR PAYMENTS
Weida revealed that one of the biggest secrets to a high credit score is keeping up with your payments.
In ten years she has not missed a single credit payment.
She works to pay all her bills at the same time and writes down any random dates that may occur.
She also uses autopay when she can to make payments easier.
MONITOR YOUR CREDIT
With the threat of your data being exposed, it’s best to always monitor your credit.
This includes setting up alerts that signal any activity early on.
If you think your information might be exposed, Weida recommends nurturing your credit for a few months as it doesn’t affect your credit score.
This story originally appeared on The-sun.com read the full story
