Rare are the dossiers that follow us through our lives and that can have important impacts on our activities… our credit is one such dossier! Paying your cell phone bill late may seem innocuous, just like accepting multiple offers of credit cards to benefit from their collateral benefits. However, the consequences of these decisions can become important when it comes to applying for loans that you wish to make in the future.

Here are some tips to help your credit score stay in tip top shape.

Make a budget

The first step to ensuring that you have a good credit history is budgeting. Calculate your revenue and your expensive to determine what amount you can put aside each month for little treats is already a good start. Respecting your allotted funds for your variable purchases and activities allows you to avoid taking on debt you’re not in a position to repay, which would have a negative impact on your credit score. 

Pay your bills on time

Make sure that your payments are always sent in advance. This is the most important factor to maintaining your credit score. If you cannot come up with the sum required to pay off your loans in time, be sure to pay the minimum required sum. If you don’t keep up with your payments, your creditors can signal this to credit evaluation agencies.

Limit your loan applications

Your credit score is negatively affected if you make too many demands of credit over a short period of time. Make sure that your applications are really worth the effort.

Keep an eye on your debt capacity

Varying the lines of credit that you possess (credit cards, margins of credit, bank loans…) can be an effective strategy to maintain a good dossier, but be careful! Be sure to not borrow more than you are able to repay.

Additionally, limit yourself to one or two credit cards. This includes cards that you don’t actively use. They represent a possibility of indebtment that can hinder your credit score.

Check your credit score

By consulting your credit score regularly, you can quickly fix any errors that might have occurred. If you are vigilant in keeping an eye on your credit dossier, you ensure that no errors mar your score.

With these 5 solutions, you can now start to take your credit into your own hands. Don’t forget that your financial advisor is here to help!