Credit is acquired when one uses the resources of another with a promise that the said resources used shall be replaced or repaid according to the terms and mode of payment both parties agree. These resources involved in credit are usually financial or money. The credit is the act of one who requests the use of the financial or monetary resources of someone with a promise to repay the same with interests. Credit history pertains to this type of credit. Everytime we hear the phrase credit history, this means not only the act of borrowing money but also the responsibility of complying with the terms and conditions set forth and agreed by both parties as to the interest rate, mode and manner of payments. This credit history significantly help in determining whether one is credible and responsible in paying his or her financial obligations. Your credit score shall be determined drawing from the records and practices you showed with your previous and existing creditors as to your compliance with regard to payments. This credit score also provides bearing to the approval or disapproval of your loan or credit card application.

Verily, maintaining and improving one's credit score and history is very important to avail of other credits and loan applications. These are five simple and easy tips to effectively maintain, if not improve, a good credit score and history.

First, make sure you only incur debts that are necessary and which amount you can afford to pay. Do not incur debts for some fancy reason which only pushes you into deep debts. These debts do not come in handy. They also accrue interests and other fees hence should spend only what is enough based on one's income. The only exception to this rule is when one needs to spend for emergency reasons such as hospital bills, car and home repairs, and other important expenditures that you cannot afford to set aside.

Second, pay your bills and other monthly financial obligations on time. Avoid missed and late payments. These reflect negatively on your attitude towards paying your financial obligations. On time payment send the message to your creditors that you mean good business with them.

Third, constantly update and balance your checking accounts. Having records of bouncing checks are fatal to your credit history and score. Issuing checks without sufficient funds constitute actual fraud against the creditors. It also tarnishes your record as a bank client.

Fourth, maintain a good amount of cash savings. In case you fall short from paying your monthly fees for your debts and other products and services availed of, you can use these savings to temporarily cover up the lacking amount.

These five simple steps provide for the most effective ways to improve and maintain your credit standing. A good credit standing allows one to obtain other loans and these might even be for higher amounts. This development is brought about by your proven credibility of being a responsible debtor to the creditor. Indeed, credit is not a one time necessity. There will be times when one has to incur several debts to provide oneself and the family a decent life and better future. Thus, maintaining a good credit score and history is very important to ensure that one can still avail for other loans, debts, or credits, and if possible, avail of a higher amount of credit.