The Dos and Don’ts of Managing Your Credit Score

Credit score


Managing your credit score is crucial for maintaining a healthy financial profile and accessing favourable financial opportunities. To help you navigate the world of credit responsibly, it’s essential to understand the dos and don’ts of managing your credit score. In this blog post, we’ll discuss the key actions you should take and avoid to effectively manage and improve your credit score.

The Dos:

  1. Do Pay Your Bills on Time:
    • Make timely payments for all your credit obligations, including loans, credit cards, and utilities.
    • Set up automatic payments or reminders to ensure you never miss a payment.
    • Paying your bills on time is the most crucial factor in building and maintaining a good credit score.
  2. Do Keep Credit Card Balances Low:
    • Aim to keep your credit card balances below 30% of your credit limits.
    • Maintain a low credit utilization ratio to demonstrate responsible credit usage.
    • Regularly pay down your balances and avoid carrying high levels of credit card debt.
  3. Do Diversify Your Credit Mix:
    • Maintain a healthy mix of credit accounts, such as credit cards, instalment loans, and mortgages.
    • A diverse credit portfolio shows lenders your ability to handle different types of credit responsibly.
    • Avoid having too many accounts of the same type and seek opportunities to diversify when appropriate.
  4. Do Regularly Monitor Your Credit Report:
    • Obtain free copies of your credit reports from each of the major credit bureaus annually.
    • Review your reports for any errors, inaccuracies, or signs of identity theft.
    • Dispute and rectify any incorrect information promptly to ensure the accuracy of your credit history.
  5. Do Use Credit Responsibly:
    • Borrow only what you need and can comfortably afford to repay.
    • Be mindful of your spending habits and avoid excessive debt accumulation.
    • Practice responsible credit management by using credit as a tool for financial stability, not as a means to live beyond your means.

The Don’ts:

  1. Don’t Make Late Payments:
    • Late payments can have a severe negative impact on your credit score.
    • Avoid making late payments by setting up automatic payments or reminders.
    • If you do miss a payment, make it a priority to catch up as soon as possible.
  2. Don’t Max Out Your Credit Cards:
    • Maxing out your credit cards can significantly harm your credit utilization ratio.
    • Keep your credit card balances as low as possible to demonstrate responsible credit usage.
    • Aim to pay off your credit card balances in full each month if possible.
  3. Don’t Apply for Excessive Credit:
    • Applying for multiple credit accounts within a short period can lower your credit score temporarily.
    • Be selective and mindful when applying for new credit.
    • Each application generates a hard inquiry on your credit report, which can impact your score.
  4. Don’t Close Unused Credit Accounts:
    • Closing unused credit accounts can negatively affect your credit utilization ratio and credit history length.
    • Keep old accounts open, especially if they have a positive payment history and low or no balances.
    • Consider periodically using these accounts for small purchases to keep them active.
  5. Don’t Ignore Your Credit Report:
    • Regularly review your credit report to stay informed about your credit status.
    • Ignoring your credit report can lead to missed errors, fraudulent activities, or signs of identity theft.
    • Stay proactive and address any issues promptly to protect and maintain your credit score.


Managing your credit score requires a proactive and responsible approach. By following the dos of paying bills on time, keeping credit card balances low, diversifying your credit mix, monitoring your credit report regularly, and using credit

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