Pay your bill on time 

Late payments are bad news for your credit—and for your wallet. They often come with hefty late fees, too. Do whatever you have to do—setting reminders in your calendar, establishing automatic bill payments on online banking, or writing it on your hand—but be sure to make that minimum payment on time, every time. 

Pay your balance in full 

Making the minimum payment is most important for maintaining your credit score. But paying your bill in full can help you keep your balance from creeping up to a level where you can’t keep up with the payments. And that will skewer your score. 

Don’t take on more debt than you can afford

If you’re tempted to take out a loan or open a new credit card to increase your credit score, stop and think first. Don’t take on more credit than you can afford. That’s when you start missing payments, and your credit goes downhill afterward. 

Don’t spend money you don’t have 

This might seem more like sound money management advice rather than a tip to keep from tanking your credit. But spending money you don’t have can start a spending spiral that can lead to overspending on credit cards (possibly leading to a higher credit utilization ratio that dings your score) and missed or late payments (a huge negative impact on your credit score). It’s smart to use debt strategically, like when you take out a mortgage or car loan. But you don’t want credit card overspending to get your finances off track. 

Check your credit score regularly 

Credit monitoring can help you keep tabs on your score, see how it ebbs and flows, and get recommendations for how you can make moves to improve it over time. It also can help you detect fraud and unauthorized accounts opening in your name. That way, you can react fast before identity theft has a chance to drop your score unjustly. Use an online credit monitoring tool like SavvyMoney to get real-time updates or request your annual free report through each of the three credit reporting bureaus. 

Only use trusted co-signers 

If someone in your life is asking you to co-sign with them so they can get approved for a loan, think twice before saying yes. And if roles are reversed, carefully consider the people you ask to sign with you. Their failure to make payments won’t just hurt their score. It will hurt yours, too. And you’re on the hook if they can’t pay.  

Avoid canceling older accounts 

It’s better to keep older credit cards active. Say you applied for a starter card to build your credit. Now, you qualify for that exciting rewards card, earning you a ton of miles or cash back. Don’t cancel the first card just because you’ve opened a second. Maybe put one recurring payment, like a streaming account, on it to auto-pay each month. You can even set up automatic bill pay, too, and avoid any inactivity fees. That way, your older accounts can keep working for you, giving your score a boost. 

From credit card approvals to home loan interest rates, your credit score plays a big role in your financial life. If you’re not sure whether you can meet your financial goals with your score where it is now, get in touch with a personal loan officer from RMCU for a check-in. You won’t know what you qualify for unless you ask.