6 Things That Destroy Your Credit Score


How To Get And Keep A Good Credit Score

Are you searching for ways to get and keep a good credit score? If so, read on, your search is over! Frankly, your credit history is the list of all pieces of your monetary life. It entails all credit card accounts that you have opened and the loans you have taken out. In addition, your credit history includes your debt settlement history. Several factors can affect your credit card score. These includes whether you have paid late or on time, been filed for bankruptcy. Besides, in case your debt has been considered uncollectable, or a court of law has ever ordered you to pay back your loan, then, it will also affect your credit score. All these information will appear in your credit history.

Lenders usually check your credit history to access your capability to repay their money. In case you frequently experience financial difficulties, you represent a greater risk to lenders. The following are 6 ways to get and keep a good credit score.

1. Not ensuring that you repay your monthly charges in full

Repaying your monthly charges in full is important, particularly when establishing your credit score. When you receive a card, make sure that you repay the balance in full as soon as your statement arrives. The significance of paying the balance in full is that it proves to the card company that you are financially responsible. You are using your credit as it was planned; as a short-term loan.

2. Not paying your debt on time

Paying all your monthly charges on time is a very important step in building and keeping a firm credit history. If you pay your bills on time, you are demonstrating to the creditor or lender that you have got enough cash flow to pay all your expenses. In case you pay your charges late, and the lender report that to credit bureaus, then, that will damage your credit history; therefore, your credit score is lowered. Therefore, you should pay your all bills in full every month, not only your loans and credit cards to keep a firm credit score.

There are many advantages of paying your debt on time. The following are some of these benefits.

a) You will enjoy lower interest rates

b) Your account will stay out of collection

c) You will avoid late charges or fees –you can be charged a late payment fee few minutes after the credit card payment is due

d) Your credit score will improve — thirty-five percent of the credit score is based on whether credit card repayments are made on time.

e) You will get a lower insurance rate(s)—insurance companies use the credit score to establish the insurance rate.

f) You will maintain your monthly payment low.

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