If you’re not already familiar, a credit score is a number that lenders use to assess your creditworthiness. Essentially a measure of how likely you are to repay a loan. A good credit score can help you get approved for loans and credit cards with lower interest rates, but a bad credit score can make it difficult to get approved for loans and credit cards, and you’re more likely to tack on higher interest rates even if you do.

So how do you avoid the dreaded bad score?

To begin with, make all of your payments on time. This is perhaps the most important factor in determining your credit score. Even if you can only afford to make the minimum payment, make sure that you make it on time.

Keeping your credit utilization low is another important practice. Your credit utilization ratio is the percentage of your available credit that you are currently using. A high credit utilization ratio can lower your credit score, so in general a good rule to follow is to keep your credit utilization below 30%.

Paying down as much of your debt as you can is another excellent way to keep your credit in check. The less debt you have, the better your credit score will be. If you can, try to pay off your debt as quickly as possible.

Work on increasing the length of your credit history too. The longer your credit history is, the better your credit score will be. If you’re just starting out and have a short credit history, try opening a few credit accounts., though you should spread out the time between these activations as opening too many lines of credit in a brief period of time is another way your credit can take a hit.

Having a assortment of credit accounts is another way to help your credit; it shows lenders that you’re responsible with credit in variety ways. And you don't necessarily need to have a lot of credit accounts, but having a few different types of accounts, such as a credit card and a car loan, can help improve your credit score.

Avoiding inquiries is another useful way. When you apply for new credit, the lender will make an inquiry on your credit report and too many inquiries can actually lower your credit score.
Check your credit report regularly and If you find any inaccurate information, dispute it with the credit bureaus as soon as possible.

Additional Useful Credit Tips:

Especially if you’re busy, you might try signing up for credit monitoring services. These services will alert you to any activity on your credit report that you didn’t authorize. You can even sign up here on Clean Sweep Financial if you browse through our list of services.

Be careful about the financial information that you share with others. Do not give out your Social Security number, or other personal information, unless you’re sure that the person you’re sharing with is reputable.

Be aware of scams! There are many, many scams that target people with bad credit. Be careful about any offers that seem too good to be true.

If you are struggling with bad credit, there are also some more advanced resources available to help you out. You can talk to a credit counselor, or a financial advisor, if you’re in need of more guidance. Our advisors here at Clean Sweep Financial have a wealth of expertise to help you through the credit repair process and we pride ourselves not only on assisting with repair, but in helping you to understand how to keep your score healthy in the future. 

Closing statement:

Following these tips can help you avoid getting a bad credit score and improve your financial future. However, it is important to remember that there is no quick fix for bad credit. It takes time and effort to build a good credit score. But if you are patient and consistent, you can achieve your financial goals.

Here are some additional things to keep in mind:

Your credit score is not the only factor that lenders consider when making lending decisions. They will also look at your income, employment history, and other factors.
If you are struggling with bad credit, there are also some more advanced resources available to help you. You can talk to a credit counselor, or a financial advisor for help. Our advisors at Clean Sweep Financial have a wealth of expertise to help you through the credit repair process.