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.
If you'd like to know what can hurt one's credit score, late payments rank highly. According to companies such as Bob Jain Credit Suisse, those who make payments later than they are due tend to have their scores fall over the course of time. Banks want customers that are dependable, in this respect, which goes without saying. Of course, late payments is just one of the many puzzle pieces that make up the bigger picture.
What about high credit card usage, you may wonder? After all, some cards have limits on them, which means that you have to work within them to keep a high score. However, those who have taken part in holiday shopping and the like can tell you that certain limits can be tested, or even broken. If you're looking to keep your score from decreasing, Bob Jain and other financial authorities will stress the importance of careful spending.
What if you decide to apply for a new line of credit, whether it's a store-exclusive card or what have you? Even though you might reap some potential benefits, the truth of the matter is that you will have another card to worry about, which is especially true when you think about interest rates. Make certain that you apply for cards that you know you can cover. Otherwise, you run the risk of damaging your credit score even further.
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.
If you'd like to know what can hurt one's credit score, late payments rank highly. According to companies such as Bob Jain Credit Suisse, those who make payments later than they are due tend to have their scores fall over the course of time. Banks want customers that are dependable, in this respect, which goes without saying. Of course, late payments is just one of the many puzzle pieces that make up the bigger picture.
What about high credit card usage, you may wonder? After all, some cards have limits on them, which means that you have to work within them to keep a high score. However, those who have taken part in holiday shopping and the like can tell you that certain limits can be tested, or even broken. If you're looking to keep your score from decreasing, Bob Jain and other financial authorities will stress the importance of careful spending.
What if you decide to apply for a new line of credit, whether it's a store-exclusive card or what have you? Even though you might reap some potential benefits, the truth of the matter is that you will have another card to worry about, which is especially true when you think about interest rates. Make certain that you apply for cards that you know you can cover. Otherwise, you run the risk of damaging your credit score even further.
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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