Tips for keeping a healthy credit score

For consumers, having healthy credit scores can lead to further savings. Lenders look highly upon those with good credit and offer better interest rates on potential loans. Thus, consumers should do their best to maintain a good credit score. A recent column in the Pacific Daily News provided several tips for doing so.

First, the longer a consumer has an account open and maintained, the better. If a consumer wants to close an account, the article recommends shutting down the newest ones. A recent advice column referred to credit accounts as muscles – the more they are exercised, the stronger they become. Thus, keeping an account active and under control over a long period of time is an effective method for boosting a credit score.

To keep these accounts under control, consumers need to meet monthly payment requirements. Missing payments may negatively impact a credit report and score. In addition, paying down credit debt is important as well, as having a balance close to the account's limit will hurt a person's credit utilization ratio – a factor that accounts for roughly 30 percent of a credit score.

Finally, the article recommends consumers continually monitor their credit. By checking a credit report regularly, a consumer may be able to stay abreast of any inaccurate or unsubstantiated records, which are unfairly lowering their credit score. If problematic or questionable items are detected, consumers can work with credit lawyers to fix their reports and boost their credit score.