Anyone who is focused on finance can tell you that credit scores matter. Some people rely on these to receive loans, while others simply enjoy having this peace of mind that others might lack. Whatever the case may be, it's important to understand the ways in which your score can be damaged, so that you can make it a point to avoid them. With the help of Bob Jain, here are 4 of the methods in question that you should take into account.
To start off - and companies like Bob Jain Credit Suisse can agree - those with low credit scores tend to be those who make payments later than their due dates. This might go without saying, especially for most bank customers, but it's easy to see why banks place emphasis on this. When someone makes payments on time, they are viewed as more dependable. As a result, their scores go up with each timely payment.
You should also know that credit card usage can impact your credit score in certain ways. For example, you might be out holiday shopping, which is where most tend to go beyond their limits. When this is done to an excessive degree, it's easy to assume that your score will be negatively impacted by it, since you're not working within the limits given to you. This is yet another way to keep your score on a strong level, and Bob Jain can agree.
Applying for a new line of credit can hinder your score, too. Even though you might be tempted by a credit card offer from a store that you frequent, the positives do not always outweigh the potential negatives. This is especially true when you take interest rates into account, since you will have more of a payment to make on a regular basis. In order to keep your score from going down, be mindful of the credit lines you apply for.
What about your other financial responsibilities that have been left unchecked? You do not want to ignore the debts that you have - these include unpaid bank statements, parking tickets, and the like - since doing so can result in a reduction of your credit score. As a result, it'll be even tougher for you to apply for a loan or an even better card. Instead of ignoring these issues, as if they aren't present, figure out ways to correct them. You're not without solutions.
To start off - and companies like Bob Jain Credit Suisse can agree - those with low credit scores tend to be those who make payments later than their due dates. This might go without saying, especially for most bank customers, but it's easy to see why banks place emphasis on this. When someone makes payments on time, they are viewed as more dependable. As a result, their scores go up with each timely payment.
You should also know that credit card usage can impact your credit score in certain ways. For example, you might be out holiday shopping, which is where most tend to go beyond their limits. When this is done to an excessive degree, it's easy to assume that your score will be negatively impacted by it, since you're not working within the limits given to you. This is yet another way to keep your score on a strong level, and Bob Jain can agree.
Applying for a new line of credit can hinder your score, too. Even though you might be tempted by a credit card offer from a store that you frequent, the positives do not always outweigh the potential negatives. This is especially true when you take interest rates into account, since you will have more of a payment to make on a regular basis. In order to keep your score from going down, be mindful of the credit lines you apply for.
What about your other financial responsibilities that have been left unchecked? You do not want to ignore the debts that you have - these include unpaid bank statements, parking tickets, and the like - since doing so can result in a reduction of your credit score. As a result, it'll be even tougher for you to apply for a loan or an even better card. Instead of ignoring these issues, as if they aren't present, figure out ways to correct them. You're not without solutions.
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