When starting a business, repairing or renovating your home, or buying a new car, the most practical thing people do is to acquire a loan. To get a loan, you need a good credit score. When you apply at a bank or any other financial institution, they always look at your credit score. So you need to keep your credit score on a good level, and here are some tips on just how to do that:

1. Paying bills on time makes a lot of difference. Aside from saving on the interest for paying late or paying late fees, it shows responsibility when it comes to your finances, and responsibility means you're more likely to pay back your loan or mortgage on time as well.

2. Don't abuse the plastic card. All credit cards have a limit, and it is not your job to use it all up! Use the credit card when you need to (and buying a PSP, an LV bag, or a Flat Screen TV is definitely not a need). Credit cards are very tempting, but the reason people have bad credit and the reason they end up paying so much more than they actually spent is because they can't pay their credit card bill. They pay late, they don't pay enough, and the amount and interest just piles up more and more. Once this happens, you're credit score is in for a very rough ride.

3. Don't treat your bank like a boyfriend or girlfriend - you can't break up, make up, and move from one to the other. Changing banks or financial institutions and playing around with debts looks bad. If you want to move on or switch, make sure that all your payments are taken cared of. Being a part of different financial institutions is not a good idea since managing your debts could be a problem. Don't get used to transferring funds because every transfer has a charge, you'll be better off if you just don't.