Having a good credit score offers numerous benefits. One of them is the advantage of a lower interest rate on your loans and credit cards. Aside from that, it allows you to save money on security deposits and insurance. The key to maintaining a good credit score is to use your credit responsibly and wisely.

Here's a simple guide to help you maintain a good credit score:

1. Pay your debts on time

Your payment history greatly influences your credit score. For VantageScore and FICO, it's the most influential factor. If you want good credit, you should make sure you pay your debts on time. To do this effectively, you can enroll in automatic payments or set up a calendar reminder.

Don't forget that on-time payment does not only apply to your bills. You should apply it to all your bills, including cell phone service, rent, and utilities.

Keep in mind that missed or late payments can last on your credit report for seven years. But it's impact decrease over time. So, make timely payments a habit.

2. Manage your debt

Other factors also affect your credit score, aside from credit card balances. Some examples include lines of credit and loan balances. You have to keep in mind that you can lose points on your credit score if you have too many debts. The easiest and most practical way to maintain a good credit score is to limit or lower your debt.

3. Monitor your credit report and check for any inaccuracies

You might not know it, but errors on credit reports are more common than you think. Good thing you can monitor them by taking advantage of the yearly credit reports. You can get it for free from Equifax, Experian, and TransUnion.

Once you have the reports, check them thoroughly and look for errors. If you find any inaccuracies, send a written dispute letter addressed to all three credit bureaus--Equifax, Experian, and TransUnion.

4. Don't close old credit cards

Outstanding loans and total credit card balances are some of the considerations in credit scoring models. You'll have a good credit score if you keep your debt load low. Also, be strategic in closing old accounts. Your available balance is essential to your credit utilization ratio. Having older accounts on your report boosts your credit score.

5. Know what affects your credit score

The best way you can maintain a good credit score is by understanding the factors that affect it. When calculating a credit score, five critical pieces of information are used--recent credit, a mix of credit, credit age, level of debts, and payment history.

You need to understand these factors, so you know what does and does not affect your credit score. Things like utility payments and checking account overdrafts will not automatically hurt or help your credit score.

You can use plenty of tricks, tips, and healthy habits to improve and maintain your credit score. The best ways will always involve not overspending, paying bills on time, and being consistent with payments.