When looking at your financial portfolio, credit score is a vital piece of the equation. Maintaining a solid credit score is not difficult, but it does require management. If you have had struggles with your credit in the past, it could take some time to rebuild, but it is a worthwhile effort. Here are some tips to help you maintain, or repair, your credit score.

Make Payments On-time

One of the biggest factors affecting your credit score is making payments on time. Missing just one payment can drop your score significantly. While your score can recover, it takes time. Payment information on your credit report remains for seven years. If you have a history of missing payments, try using payment reminders or automatic payments to ensure your payments are made on time. Once you have made all payments on-time for six months, you should see a marked improvement in your credit score.

Pay Down Debt

Debt is often split into two categories; good debt and bad debt. Good debt is considered to be an investment that will gain value over time, such as a mortgage or student loans. Bad debt is debt that carries a high interest rate, often credit card debt. To start paying off debt, start with a budget. Make sure you record all of your spending, no matter how insignificant it may be. Once you have your budget set, look for ways to cut spending. You may find the $3 per day you spend on specialty coffee could be put to better use making larger payments on your high interest rate debt.

If you feel overwhelmed by the amount of debt you have, speaking with a professional could give you a better grasp on how to get ahead. There are many credit counseling services available that can review your situation and give you advice on the best way to proceed.

Review Your History

Services that monitor your credit have popped up everywhere over the last few years. While these can be helpful to keep an eye on your accounts, it never hurts to request and review your credit reports yourself. As long as you request the reports directly from the credit reporting agency this request will not affect your credit score.

Watch Your New Accounts

While you need accounts to build your credit, be careful not to open too many too quickly. New accounts can actually lower your credit score before you are able to use them to boost it. Also, opening a lot of new accounts at once can look risky if you are a new credit user. Instead, open new accounts responsibly and pay them off on time and you will see a rise in your credit score over the long term.

Call Cambria Mortgage

To get started, call Cambria® Mortgage™ at 952-942-0110 today or visit CambriaMortgage.comOur team of experts will provide personal, hometown service with sound advice and impeccable attention to detail at every step of the process.