First of all, what is a credit score? It’s a score that can range between 300 and 900. It readily outlines your creditworthiness. Your credit score can describe your eligibility for taking out a loan and into consideration your ability to repay the loan. Having a credit score of 750 and up is where you eligible for better interest rates and better approval odds as well as enticing credit card rewards. We recommend these 5 things to help you maintain a strong credit score.
- Avoid going over your Credit Card Limit! We recommend keeping your debt ratios anywhere from 20 to 30 percent. High credit usage has a moderate impact on your credit score.
- Don’t rely only on credit for everything. High dependence on credit for your needs is not a good look. Financing everything from cell phones, tablets, tv and washer, and dryers can add financial stress by having multiple items may land you in financial trouble making you incapable of repaying your loans.
- Have a Healthy Mix of different types of Credit. A mix of different loans in your credit history strengthens your credit score. A combination of secured loans which include home loan, car loan and unsecured loans such as personal loan, credit cards, or loans on credit.
- Avoid Partial Payment On Credit Cards. Most individuals tend to make only partial payments in the form of minimum payment. However, it must be noted that your lender will charge interest on the balance amount and the same will add up in the next credit card bill. This is why its best to pay more than the minimum payment. If not your balances will hardly decrease and you will just be making payments on interests alone.
- Always make Payments on time! Your Payment history accounts for about 35% of your Credit score. So if you have any late payments that can lower your score significantly. It’s always best to make all your payments on credit cards and installment loans on time or make arrangements some companies offer skip payments or can extend the due date.
A Goal without a Plan is just a Wish. Give us a call TODAY at 844-FIX-URCR or click on the following link creditservicesofamerica.com to schedule your FREE consultation and create your personalized plan to achieve your credit and debt GOALS!