- 1). Stick to a monthly budget that you can afford that leaves you with some extra cash. This will ensure that you have the funds to pay your credit card bills and even pay a little extra if you decide to do so.
- 2). Set up a system to help you pay your bills on time every month. You can write dates on a calendar you post in a prominent place, set up automatic payments through your creditors or program alerts on your mobile phone to help you remember to pay bills on time.
- 3). Keep your credit card balances at no more than 30 percent of their total limit to maintain a good credit score. This is one of the factors that is used in determining your credit score. For instance, if you have a card with a $5,000 limit, you will want to keep charges to no more than $1,500 total per month. The closer you are to your credit limits on your accounts, the more your credit score will decrease. If you can, pay off the total balance on your credit accounts each month.
- 4). Track your credit purchases and compare them to the information on your account statements. Order a credit report from each of three main credit reporting agencies at least once per year and look over it for accuracy. You can receive one free from each credit bureau, once per year at annualcreditreport.com.
- 5). Avoid opening multiple credit accounts or loans in a short period of time. Too much activity within the same time frame can hurt your credit score because it can appear that you are making irresponsible decisions.
- 6). Don't close older credit accounts because it will hurt your score. If you close an account you've had for a long time, it will seem as if you have a shorter credit history than you actually have. Length of credit history factors into your score.
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