Life After Credit Repair

February 23, 2012 by  Filed under: Credit 

From where you stand right now, good credit may seem like it’s far away. But, keep making the right moves and you’ll be there before you know it. You might have some mixed feelings after you reach your credit score goal. Of course, you’ll be happy that you’ve finally made it, but you might also have a “What now?” feeling now that you no longer have that major goal to work toward.

Maintenance Mode

The good news is that the hard part is over. Recovering from a bad credit might be one of the hardest things you’ve done so far. The bright side of pulling yourself through the credit score ranks is that you’ve also gained the skills and knowledge necessary to keep your credit score that way.

Now that you’ve repaired your credit, your job now is to maintain that good credit score. That means continuing to make timely payments on all your accounts. You’ll also have to be sure that you only take on as much debt as you can afford and that you keep your credit utilization in check.

Monitor your credit reports periodically throughout the year to be sure your creditors are reporting your accounts accurately. Catching mistakes early is key to keeping your credit score in tact.

Take it Slow With New Accounts

Once you’ve gained an excellent credit score, you may start to think about all the great credit card offers you could never qualify for when you had bad credit. The prestige that comes with owning a great rewards card or an American Express charge card is tempting. But, you should take on new credit cards slowly, as you can afford to, not simply because these creditors have started marketing to you.

Sometimes Credit is Half the Battle

A good credit score opens a lot of doors that were previously closed to you, but good credit isn’t the only thing lenders look for. Your income and debt are other factors that are typically considered when you’re trying to qualify for a credit card or loan.

In general, the higher your income and lower your debt, the easier it will be to qualify for major loans like a mortgage, car loan, or a top-tier credit card. That’s one more reason that you shouldn’t have taken on new credit cards so quickly and especially why you shouldn’t run up big balances on those cards.

Recognize the Signs of Trouble

Part of maintaining your good credit score is being able to recognize when things are getting out of control. Using a budget to manage your finances can help you see when money starts getting tight. In that situation, you should scale back on your spending, especially on credit card purchases. Additionally, allowing your balances to move closer to the credit limit and not paying your balance in full every month are signs that you might be having trouble.

The last thing you want is to go through the credit repair process again. Sure, you could do it, but that doesn’t mean you should. Protect your credit score this time around and enjoy the ease of life that comes with better credit.

This guest post was written by Steve Dowell, a professional writer specializing in topics related to personal finance, debt relief, credit repair and more. Pass through for more tips and advice.

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