
Keep your credit rating high to save on interest. A high credit score can help you find the best possible rates for borrowing. You can get more financing if you have a high credit score, whether you are looking to buy a car, house or anything else of value.
How to maintain a good credit rating
You can improve your credit rating by paying your bills on time, and maintaining low balances on revolving account. Your credit score can help you spot any problems early and take action before they escalate.
Review your credit report at all three national consumer reporting agencies, (Experian Equifax TransUnion). By checking your credit reports, you can gain a better understanding of your score. If you see something suspicious or believe that you have been the victim of identity fraud, contact a bureau immediately to correct any incorrect information.

Payment history is the most important factor in your credit score, so pay your debts on time and in full whenever possible. This is an easy way to improve your score. You can do it by setting up automated payments or by setting alerts reminding you to pay bills on time.
The credit utilization ratio is also an important factor in your credit rating. It indicates how much credit that you are currently using. It's typically best to keep your credit utilization rate under 30% so lenders know you're only using the amount of credit that's necessary for your expenses.
Don't open several new credit accounts in a short period of time, as this could look risky to lenders. It can also hurt your score if you have a large number of accounts.
You can limit the use of revolving debt by maintaining a credit limit of at least 30% on your cards. This will let the credit bureaus know that you have an even mix of credit types, which can help improve your credit score.

Your credit score also depends on a good mix of different loan products. The models used to calculate your credit score take into account that you can responsibly manage different kinds of loans - from personal loans to mortgages.
A credit card is a simple way to build your credit rating, but only if you are responsible and use it sparingly. Charge a minimal amount each month to your card and pay all of the bills on time.
You can also try to move your outstanding debt around by lowering your credit utilization rate and paying off debt on lower-interest accounts before focusing on the higher-interest ones. This will raise your credit score. However, you're better off focusing on debt repayment and reducing your balances.