To build and maintain a clean credit history and good credit score, consider following what we term the four pillars of credit:
- Apply Sparingly
- Use Strategically
- Pay Consistently
- Protect Systematically
1. Apply Sparingly
If you’re new to credit or have a poor credit rating, minimize account application to just 2-3 annually.
2. Use Strategically
A single, small purchase on each account each month followed by its full repayment by the due day can help you build excellent credit.
3. Pay Consistently
If you use a credit card or you have a loan in repayment, consider setting up your payment to happen automatically.
4. Protect Systematically
To protect your credit, you will need to access, review, and understand your credit report regularly and for free at AnnualCreditReport.com. This will have no negative effect whatsoever on your credit rating.
