For many consumers the excitement of buying a new car, new home or some other well deserved but high priced item can come to a grinding halt if their credit scores are low. With that in mind its vitally important to preserve your credit score while at the same time making sure you can do everything legally possible to send your credit score towards the higher end of the grading scale. After all this number is the key to obtaining a large amount of credit at very favorable rates. Lets take a look at a few ways you can achieve and more importantly sustain a high credit score.

Currently the most commonly used credit score is the widely popular FICO (Fair Isaac Company) score. The median FICO score for the average United States consumer stands at about 723. A credit score in this range will qualify you for the average rates that are offered nationwide. Fall below this median average with your credit score and you will be subject to higher rates resulting in a higher monthly payment. Maintain a credit score higher then the FICO average of 723 and you will be able to obtain credit at a much more favorable rate and thereby enjoy lower monthly payments resulting in more discretionary dollars from your hard earned paycheck at your disposal.

In order to keep a high credit score you need to make sure you keep a close eye on the five factors that affect your FICO or credit score. They include your previous and current payment history, your dollar amounts owed in current outstanding credit, your length of credit history (hopefully favorable), your types of credit used and any new credit you may have recently incurred. How significant is the difference in your credit score or how can having a higher credit score benefit you? Let the following example serve to illustrate why a keeping your credit score high versus low is more beneficial to your pocketbook ((this example is for illustrative purposes and doesnt constitute current interest rate averages. Please consult your bank or lending advisor for the most current up to date percentages based on your credit score). A credit score of 660-679 would most likely qualify you for an interest rate of 6.36% now compare that to someone having a credit score of 760-850 where the interest rate is closer to 5.74%. This small difference in percentage points can lead to a big savings or loss in your total dollars expended on a monthly payment. Remember the national average of 723? Consumers possessing a credit score of 723 would most likely qualify for an interest rate of 5.97% only slightly lower then a consumer with a higher credit score but significantly higher monthly payments on average.

Clearly you can see why having and maintaining a higher credit score is obviously to your economical benefit. The key to obtaining and keeping a high credit score is to closely monitor several factors that could and will influence the bottom line of your credit score. They include the following: Paying your bills on time, maxing out your credit cards, applying for a new mortgage, vehicle loan, credit card or department store card. They may also include applying for new credit cards in order to conduct balance transfers or false money juggling, declaring bankruptcy and other financial activities that may not benefit your credit score in a positive light or fashion.

Probably the best way to make sure you keep your credit score high is to regularly and closely monitor your credit report. This detailed report shows your entire credit history and plays a large part in determining your credit score when lenders run a check against your credit before you obtain financing through their establishment or company. Make sure to obtain a copy of your credit report at least once every year. This annual checkup of your credit will only increase your chances of keeping your well earned credit score higher versus lower.