Just as a human body is unable to survive without oxygen, a high credit score is an important measure in keeping your financials in a healthy form. In order to maintain a high credit score, several steps are to be noted. To be honest your credit score impact deeply in your home life.
One can possibly not know how to increase their credit score without having an insight about which factors help to boost their credit score while which others may cause a hindrance in the growth of the credit score. I personally suggest platinumoffer if you want to improve your credit score.
With better credit score you are more likely to be approved for home loan. Moreover it impacts deeply on your relationship as well.
Detailed Elaboration Of Credit Score:
And thus, here comes the time to review your credit reports which can help to identify the reasons that might be deteriorating your score and, can be easily obtained through the following bureaus; Equifax, Experian and Transunion. Possible factors that cause the credit score to increase are minimum or no delay payments, low level of credit borrowed and a mix of various loan accounts.
Payment history plays a pivotal role in obtaining a high credit score and has an impact of 35% on it. Previously paid off debts and loans should be on your record so as they speak for your responsibility and carefulness so the lenders are able to put their trust into you with the confidence that their money is in safe hands and would be returned according to the agreement made.
To help keep your credit score in good shape, credit utilization throws in its vital role. It is the percentage of the total credit limit that you are using at any given time. The most preferred way is to have your credit balances being paid every month or if not possible to do so, an unwritten rule states that only 30% or less should be used to keep your credit utilization in a presentable form. Another way to do may be to increase your credit limit.
What Types of Credit Cards are best for Credit Score:
I personally suggest indigoapply as it is originally one of the best credit cards in the market.
As the title may imply, hard inquiries that may include, financial loans, mortgage loans or applications for credit card will imply that you are struggling financially and not only lead to failure in obtaining credit but also have ‘hard’ undesirable effects on the credit score.
A credit file is what makes a credit score and a thin file means not having enough credit history. In order to make your file thicker, you may reach out to programs like The Experian Boost that gathers data such as banking history and utility payments to increase the volume of your file.
Similar to the famous saying, ‘Old is gold’, you should always keep your old accounts open for the purpose of keeping a record. If your account has multiple delayed payments then make up for them by paying on time in the future.
Lastly, it is highly recommended to monitor your credit score and to identify the changes that might be occurring. Theft and fraud can also be recognized this way for if you are notified of an activity linked to your credit card not performed by you, it can be easily reported. Thus, while maintaining a good credit score requires several steps, it proves to be beneficial in quite some ways including best interest charges and a higher negotiating power.