You may think that your credit score is picture-perfect; after all, you have a few credit cards and you manage to pay on them every month. So, what’s the problem? The truth is that there may be things you aren’t doing that are putting a dent in your credit score:

1. You aren’t using your credit card – Many of us think that because we have a credit card we automatically have good credit, but this just isn’t true. An open credit card is a good first step, but in order to establish a solid credit history (and therefore bump up your credit score) you must spend on the card regularly. What many people don’t know is that simply making a purchase or two each month is enough to begin building a strong credit score.
2. You aren’t looking at your credit report – What you don’t know may hurt you, especially when it comes to your credit report. Any credit report could have a number of errors or discrepancies that can damage the best credit score. It is therefore important that you make a point of ordering a copy of your credit report at least once a year so you can review it carefully and check for any errors. Of course, if you spot anything that doesn’t look right, it is important to immediately contact the appropriate credit reporting agency and submit a request for an investigation.
3. You aren’t paying attention to your credit card’s due date – The only way to ensure a strong credit score is by paying your credit card on time, each and every month. Many people think that failing to pay their card on time every once and a while won’t harm their credit score, but the truth is that even one missed payment can put a dent in your credit score and open up the possibility of your credit card company raising your interest rate.
4. You aren’t paying down your credit card balance – Paying the minimum balance just doesn’t cut it when it comes to building a strong credit score. The credit reporting agencies see large credit card balances for extended periods as a red flag, as it often indicates you are spending beyond your means. Keep your spending in check and pay those credit card balances down every chance you get.

Due Dates

Make sure you know when that bill is due; not only the date, but check for time of day, as some companies charge penalties if the payment comes in after a certain time. This will help you to get that bill paid on time. This should not be very hard for most, especially now that the new credit card laws will soon be in effect and your bill will be required to be due on the same day every month.

For holders of multiple cards, this can get tricky. Use a calendar to track due dates, set up automatic pay and e-mail reminders, or consider calling your numerous companies and trying to get your due dates in sync based on what you can afford.

Watch Paying Minimum Balances

Admittedly, it is nice to have the option to pay the minimum balance on your card when money is tight. However, doing this often does not help you out. You are incurring more and more interest on carried balances. You wind up paying a lot more in the long run. To protect yourself and your credit, it is best if you can keep your balance down and pay the balance due  in full each and every month. If you are having a hard time, try to at least pay more than the minimum balance and work as fast as you can to pay off the rest. Remember, if you don’t carry a balance, you don’t carry any interest, saving you lots of money and headaches.

Keep Your Debt Under Control

Watch your credit card spending. Do not pull your card out for every purchase. If financial troubles hit, curb or eliminate your spending until things are back on track. If the debt is mounting, do not ignore it. Take control, stop spending, pay down your balances and cancel the card or cards if you have to. Save yourself from debt. You don’t have to sign your soul over to the credit card companies!

This does not apply to credit cards alone. Want to save your credit score and your good rates? Watch all of your debts. Those credit card companies can and will monitor customer credit reports. Any slow-pays or no-pays will send up the red flag, whether or not the credit card company has any real reason to worry. You will then be tagged as a high-risk and might be penalized with lower limits and higher interest. Who wants that?

Learn to budget, pay down your debt, give up those little (and big extras) until you have control. Take care of debt first and foremost and save you credit score from falling into a hole that is near impossible to crawl out if. If this does occur, give credit cards up until you can gain control. Use other methods to rebuild your score once your debt is paid down and think about credit cards later on when you have the means and the knowledge to keep things flowing smoothly.

Instead of simply listening to financial advisers tell you that you should pay off your credit card balance, it may be best to start with strategies for managing the balance you currently have. The truth is that most of us would prefer not to have a credit card balance, but because this may simply not be reasonable for some individuals at this time, arming them with the tools necessary to handle their credit card balances may be a more logical step in the credit card process.

1. Check the due date – every time.

It is important to remember that the credit card company can change the due date at any time. The credit card company may also shorten the length of time in which you have to pay your credit card bill, so always check this due date every time you receive your monthly credit card statement.

2. Pay far enough in advance to account for processing and mail delivery.

Don’t get caught with late payment charges because your payment didn’t make it in time. Instead, always allow at least a week for your payment to arrive to your credit card company when sending it through the US Postal Service. Add a day or two if a holiday is approaching, as well.

3. Consider online bill payment services.

If sending your credit card payment through the postal service makes you nervous, then consider online bill payment services. Many credit card companies have this service on their website and you may also pay your bill through your bank’s online bill payment service.

4. Always pay at least the minimum.

Regardless of your budget or financial position, it is imperative that you always, at the very least, pay the minimum balance on the credit card. It is simply not worth a damaged credit score and credit card fees.

5. Pay more than the minimum, when possible.

First, the bad news: you will get nowhere fast paying just the minimum balance every month. Now the good news: if you pay just a small amount more towards your credit card bill each month, you could enjoy saving hundreds, if not thousands, of dollars in interest payments over the years.