Learning how to manage a credit score is a challenge, and it doesn’t come easily for everyone. Many people have at least one time in their lives when they need credit counseling services. Some people have many times they need the services for credit repair. In 2005, more than 2 million bankruptcy cases were filed in the United States. However, the following year, only 600,000 cases went to court. Although the numbers fluctuate, the problem of accumulating too much debt and not being able to pay for it happens for a multitude of reasons. Building healthy financial habits into your daily life is one way to avoid having to file for bankruptcy or working with a credit restoration company. Here are additional steps for improving your credit score to excellent and keeping it there:

  • Keep your debt to income ratio low. 10% is ideal, because it allows for the big unknowns that happen in life. When the ratio gets up around 30%, the FICO score starts to tip toward the negative.
  • Pay your bills on time. If you can’t pay the full amount, don’t neglect the account. Call and talk to the customer service. Many times, there are options. Sometimes paying a partial payment is better than not paying at all.
  • Keep your balances on credit cards low or don’t carry a balance. Paying the interest on credit cards and high interest loans gets expensive. Not carrying a balance means you’re saving money by not paying interest and maintaining your credit score, which will also translate into saving money with low interest rates on large purchases.

Use these steps to create a good credit score. Credit counseling services with EFG Credit Solutions can offer help in how to fix your credit score. Once your credit score has been improved, follow the steps above to continue to improve your score, and bring it into the excellent range.