How to Maintain a Good Credit Score
5 Min Read | Published: October 3, 2024
This article contains general information and is not intended to provide information that is specific to American Express products and services. Similar products and services offered by different companies will have different features and you should always read about product details before acquiring any financial product.
Good credit can offer a number of benefits. See strategies that can help you to maintain a good credit score and learn more about managing your credit.
At-A-Glance
- A good credit score could help you to qualify for certain financial products, and better interest rates.
- To maintain strong credit, it’s beneficial to pay your credit obligations on time, be mindful of how much credit you use, and consider keeping older accounts open.
- You should also check your credit reports from the major credit bureaus and dispute any errors or inaccuracies.
With solid credit, you may find it easier to get approved for certain financial products, including loans or credit cards with lower interest rates. Once you’ve built good credit, however, there are steps that you can take to maintain it. In this article, we’ll explore strategies that can help you maintain good credit so you can take steps to set yourself up for a successful financial future.
How to Maintain a Good Credit Score: Strategies That Can Help
These tips can help you to use credit responsibly and in turn, keep your credit score in good shape:
- Pay Your Bills on Time
Payment history is one of the most important factors in your credit score.1 For this reason, you should pay all of your credit obligations on time, every time. These may include your mortgage, auto loans, personal loans, student loans, and credit cards. It’s a good idea to sign up for autopay to help prevent late payments.
- Don’t Use Too Much Available Credit
Credit utilization shows how much credit you’re using compared to how much credit is available to you. It’s advisable to keep your credit utilization ratio at or below 30%, but this isn’t a hard and fast rule.2 It’s best to keep it as low as possible. To do this, repay all your credit balances at the end of the month or, better yet, throughout the month.
- Consider Keeping Accounts Open
While it may be tempting to cancel unused credit cards, it may be smart to think about keeping some credit card accounts open. That’s because the length of credit history is a factor in your credit score. If you close a credit card, it may negatively impact your credit score, especially if it’s an account that you’ve had for a while.3
- Only Apply for Credit That You Need
When you apply for new credit and the lender checks your credit history through a hard inquiry, your credit score may temporarily go down by a few points. Therefore, you may want to consider only applying for credit when you need it. Fortunately, some credit card issuers may allow you to check to see if you qualify first with an initial soft check before moving on to a hard credit check.4
- Diversify Your Credit Accounts
Credit mix refers to the various types of accounts you use and can also impact your credit score.5 If you mainly rely on one type of credit account, such as credit cards, for example, it may be beneficial to open other types of accounts, like personal loans and lines of credit the next time you need to borrow money.
- Check Your Credit Report for Errors
It’s a good idea to get your credit reports from Equifax®, Experian®, and TransUnion®. Review each report carefully and dispute any credit report errors with the appropriate credit bureau as they might be bringing down your score.6
Did you know?
Your FICO® Score is based on five factors: payment history, amounts owed, length of credit history, new credit, and credit mix.7
Frequently Asked Questions
A good FICO® Score is generally considered to be anything that falls between the 670 to 739 range. On the other hand, a good VantageScore® 4.0 credit score is generally considered to be anywhere between 661 and 780.8
Your unique goals and financial situation will dictate how often you should check your credit score. However, many experts recommend you check it at least once a year.9
There is no hard and fast timeframe it takes to rebuild credit. It may be anywhere from a few months to years, depending on your financial habits and what’s on your credit report.10
The Takeaway
A good credit score can help open the door to certain financial products and could help you to qualify for better interest rates. To maintain strong credit, you can take financially healthy steps, like paying your loans on time and keeping your credit utilization ratio low.
1,2 “How to Maintain a Good Credit Score,” Experian
3,4,5,6 “How to Improve Your Credit Score,” Experian
7,8 “What is a Good Credit Score?,” Bankrate
9 “How Often Should I Check My Credit Report?,” Experian
10 “7 Ways to Improve Your Credit Score,” Money
Anna Baluch is a personal finance writer from Cleveland, OH. She enjoys helping people from all walks of life make smart financial decisions. Her work can be seen on Credit Karma, Forbes, LendingTree, Insurify, and many other publications. Connect with Anna on LinkedIn.
All Credit Intel content is written by freelance authors and commissioned and paid for by American Express.
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The material made available for you on this website, Credit Intel, is for informational purposes only and intended for U.S. residents and is not intended to provide legal, tax or financial advice. If you have questions, please consult your own professional legal, tax and financial advisors.
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