Believe it or not, your credit score is one of the most important factors of your financial situation. It can impact whether or not you receive a loan, and it could play into how much you can spend on a regular basis. In any event, some events can actually damage your score, meaning that it will take time until it's rebuilt. In order to save yourself the headache, here are 4 talking points that you'd be wise to consider, courtesy of Bob Jain.
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.
You should also know that your financial responsibilities can be ignored, which can hurt your credit score in the worst of ways. It doesn't matter if you have a parking ticket that has been unpaid, a bank statement that hasn't be covered, or what have you. Each of these components can spell disaster for your score, meaning that they cannot be left by the wayside. By focusing on these problems as soon as possible, chances are that you will be better off.
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.
You should also know that your financial responsibilities can be ignored, which can hurt your credit score in the worst of ways. It doesn't matter if you have a parking ticket that has been unpaid, a bank statement that hasn't be covered, or what have you. Each of these components can spell disaster for your score, meaning that they cannot be left by the wayside. By focusing on these problems as soon as possible, chances are that you will be better off.
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For more fiscal details from Robert Jain, feel free to contact Robert Jain Credit Suisse.. Also published at 4 Ways To Damage Your Credit Score, From Bob Jain.
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