Your credit rating is one of the essential numbers in your personal financial history. There are so many aspects of your financial life that depend on your credit rating to secure financial services. From getting a mortgage to getting a competitive rate on a vehicle loan, consumers are dependant on their credit rating to establish low interest accounts.

1. Pay minimum monthly payments on credit cards. Missing the monthly payments can lead to debt, which can lead to negative history on your credit rating. It is important to make the minimum monthly payment for each active account.

2. Avoid collections. If you have debts in collections that repay these debts in a timely manner. This will ensure that your credit rating is protected.

3. Limit the amount of new credit that you apply for. Applying for multiple new accounts at one time can cause a deficit in your credit rating as it diminishes the account history that has been established on your credit file.

4. Don’t spend more than you can afford. Spending more than you can afford leads to debt. High amounts of debt, combined with missed payments are one of the quickest roads to a bad credit rating and should be avoided at all costs. Interest adds up quickly when credit cards are used regularly.

5. Don’t cancel the credit card you have been using for decades. This credit card provides history to your credit file, especially if you have been making payments on time and regularly paying the credit card premiums. Years of bills being paid on time could be erased when you choose to cancel a credit card with history.

6. Don’t use more than thirty percent of your credit limit. Using more than thirty percent of your credit limit can lead to lenders viewing your credit file as risky. Using less than thirty percent of your available credit can give your credit score the boost it needs.

7. Avoid consolidation loans. One large balance looks a lot worse on the credit report than multiple small balances. High balances should be avoided, even if you have created this balance to pay off multiple accounts. Take this into consideration the next time you are offered a consolidation loan.

8. Remove negative blemishes from your accounts. Did you know that one late payment could cost you upwards of one hundred points from your credit score? Removing these aspects from your credit score, as well as checking for mistakes have been shown to increase the average credit score by ten percent.

9. Stick with low limits. When higher limits are offered to consumers, it causes the feeling of security when higher balances are kept. Get rid of this false sense of hope by avoiding high credit limits.

10. Order your credit report. Checking the credit report for mistakes can save the consumer valuable points on their credit report.