There is much talk on how to achieve an excellent credit score after trauma has occurred to the health of your finances.  The road to recovery is a tricky one, however it is well worth the work involved.  Though it may seem that achieving your goal score is the only hurdle to be jumped, there is a significant question that is often left unanswered. Once you have achieved your goal, what comes next? There are 3 rules to maintaining excellent credit that are very simple yet effective. There are several ways to prevent your new squeaky clean score from ever becoming tainted again.  Following these steps will assure that you leave your old bad habits in the past.

1.  Don’t Borrow More than You Can Afford to Pay Back

This should go without saying, however, borrowing more than what you can afford is very common due to optimism of finances.  How many times have you overindulged on a vacation, a new outfit, or holiday shopping knowing that with your next paycheck your finances will be back to normal?  For most, this spending behavior will not impose a negative effect on your finances.  However, in some situations finances do not match with the consumer’s optimistic plans. The consumer is then left to deal with a credit card charge that may be too large to repay in a timely manner, or a bank account dwelling in the negatives.  To prevent a miner financial crisis from turning into a much larger financial crisis, set a spending limit each month and obey it.  For your bigger purchases, complete savings schedule and set a date for when you plan to make your purchase. If you do find yourself in a financial crisis, and debt is becoming more of a burden, debt consolidation may be of interest to you.

2.  Keep up with Due Dates

Keeping track of the due dates for each bill you have every month can be one of the most tedious and unforgiving tasks of all.  Even the most organized of consumers may find one or two monthly bills slipping past their memory from time to time.  Most believe that the key to conquering the due date is to keep yourself organized, which is true. Currently our favorite budget planner is excellent at keeping our monthly utilities and expenses organized and easy to read. However, planning is only part of the battle.  An organized folder will not aide you in paying your internet bill on time if it is out of sight.  Keep your organized bills with their due dates on display in an area that you visit frequently in your home or office.  Such areas may be found near the mirror you use most often in your home, directly under your key rack, or marked in red on your desk calendar at work.

3.  Check Your Credit Often

Checking your credit has been a bit of a taboo subject.  Many consumers have been worried away with concerns that multiple checks will actually lower their score.  Truth be told, monitoring your credit using a service such as MyFico will not lower your rating.  On the contrast, using a monitoring service will only help to improve your score.  If you find any information that may be false, inadequate, or missing you have the opportunity to dispute that incorrect information and update your file. Minor errors such as an incorrect date or an incorrect dollar amount can have a substantial effect on your overall score.

Following these rules will assure that you retain the outstanding credit health that you have gained.  It is important to keep in mind that achieving the credit score that you have been working towards for so long is only part of the battle.  Upholding your perfect credit score is obtaining by spending within your limits, paying bills on time, and monitoring your credit.