Wondering how do some people maintain an excellent credit rating? Here are their secrets, eight simple steps that are easy to implement today!

Discipline, regularity, stability and foresight: these are the golden rules to maintain a good credit rating or to improve after a mishap. People who are considered “good students” by credit agencies are well aware of this and apply these principles to the letter. Follow the guide.

Make a budget and stick to it

To avoid getting into debt, you have to live within your means. And the best way to know what you can afford or not is to have your budget. Make a detailed report of your monthly income and expenses, set a realistic budget and stick to it.

Use our free online tool to make your budget.

Accumulate savings

In your budget, plan a portion devoted to savings. Putting money aside regularly is the best way to reassure lenders. Also establish a financial cushion representing three months of expenses to see come in case of a hard blow, a job loss or an illness for example.

Always pay your bills on time

For an impeccable credit record, never be late in paying your bills. A delay is a delay, even for a small amount. This would taint your file permanently, because any failure is reported to credit agencies and registered in your file. If possible, also pay each month the full balance of your credit card.

Use credit with caution

For an unblemished credit report, credit should be used sparingly. In any case, your debt ratio should not exceed 30% of your borrowing or credit capacity.

You can calculate your debt ratio using our tool.

Limit credit applications

If you apply for credit, the lender will review your credit file before deciding whether to advance the amount or not. These requests for information appear in your file. If they multiply, it may suggest that you are financially at a loss and that you are looking for money to get out of it. That’s why it’s good to limit the number of requests. For example, if you are shopping for an automobile or property, get the different proposals in a period not exceeding two weeks, so that these requests are considered as one and the same request in your credit file.

Possess several credit instruments

To have a good credit record, one must also demonstrate that one is able to use various credit tools reasonably and sensitively. Therefore, it is good to own several products like a credit card, a car loan, a line of credit. And of course, we must repay the borrowed money and not to take advantage of it to take on more debt!

Bet on the long term

A long – and of course good … – credit usage history will work in your favor because it demonstrates your long-term reliability. Therefore, keep activating your oldest credit card, even if you rarely use it. And do not forget: Transferring a balance to a new card – to benefit from a reduced interest rate for example – is equivalent to a new credit.

Demonstrate stability

Avoid repetitive moves and frequent job changes. In addition, it is well seen to accumulate assets (savings, property, automobile), as long as we repay the ruby ​​loans on the nail.

With these tips in your pocket, you have all the information you need to build a five-star credit report!