Maintaining one or more credit cards is not just a facility; it comes with a lot of responsibilities as well. Being ignorant in such matters can really put your financial life in jeopardy. Maintaining a good credit score is one of the primary prerequisites if you are looking for a financial growth (and frankly, who doesn’t!). So here are some easy methods that can ensure that you have a good credit score:

Analyze the Patterns

The five primary factors that affect your credit score are payment history, level of debt, credit history, the mix of credit and credit inquiries. If you currently have a low credit score, you can start off by requesting for your credit reports. Thereafter, you can analyze your past performances by carefully studying your reports keeping these five factors in mind. This alone will give you an idea of what things have gone wrong in the past and how can you repair them. This would also help you to check whether your reports are accurate or not.

Be Punctual

Paying your bills on time can elevate your credit score by 35%. Moreover, it leaves an impression on a lender or credit provider that you value time and adhere to your deadlines. These qualities can also help when you apply for a new job as many companies now check credit scores while recruiting new employees.

Old is Gold!

The older your account is, the better it becomes for a lend to analyze your credit history. Moreover, your credit age contributes 15%, while calculating your credit score. However, if your account is inactive for more than ten years, it is automatically shut off. So keeping your old accounts active can actually help.

Keep your debt baggage light

The level of debt you have affects your credit score by 30%. So if you are one of those who waits for the eleventh hour for paying your debts, your credit score can get into some serious trouble. Pay your loans on time and do not keep high balances on your loans. Your credit utilization i.e. the ratio of your credit balance to your credit limits also plays an important role. Ideally, it is suggested to use your credit cards up to 30% of your credit limit. The lower your level of debt is, the better will be your credit score.

Having mix credit can help

If you multiple credit accounts on your credit report, the lender gets an impression that you have an experience in managing them. One caution though; do not get too ambitious and open an account just to keep a good credit score. Open an account only if you need them.

Think twice before applying for a credit

Each time you apply for a credit, there is an inquiry on your reports. For each inquiry on your credit account, your credit score has to face a 10% reduction.

Your credit score ranges from 300 to 850 points. There are various standards for calculating a credit score. The above article is based on FICO scoring techniques. You can also refer to some of the sites which can calculate your credit score for free. But it is advisable not to use websites that ask for your credit card details.