29/09/2020 By Cheryl Doss
Paying your bills on time will always go a long way in enhancing your credit score. A good credit score will help you secure a renting apartment, a mortgage, or any other form of loan.
Rest assured of significant interest rates if you have a good credit score. This means that a low credit score will often lead to a high annual percentage rate. An excellent score will also impose lower rates on credit card balances and loans. In most cases, low-interest rates will always lead to a fast debt clearance.
To build a good credit score, you need to establish a history, diversify your credit, use autopay, review your statements, and know your credit report. However, you should never close any of your inactive accounts.
It is also worth noting that your credit score will impact every activity you intend to do. If your score is low, there are hefty and fast rules for enhancing your credit; however, some of them seem unreasonable.
Unsurprisingly, your credit score pays about thirty-five percent of your bills when you pay on time. When you keep your balances low, the chances are that you’ll earn an extra thirty percent score. However, this doesn’t mean that you should get extravagant.
Meanwhile, manage your debt wisely and avoid racking up a lot of debt. If you’re finding it difficult to manage your credit, please consult your bank manager or even an advisor to enlighten you on debt management. Pelican, for example, provides free credit counseling.
If you have a low credit score, refrain from hiring a non-reputable credit repair company because you want to clear the dirty job. More often, they will dispute everything on your credit report to get the job done.
As a result, there will be many disputes in your credit report, which isn’t a good impression to the credit bureau. Instead of wasting a lot of money to get a quick fix, utilize the money for future bills.
With a credit score history – whether good or bad, rest assured of an additional fifteen percent score. The longer your credit card stays active, the better. Always deposit little amounts in your credit card than to leave it inactive.
You can also use your credit card to buy foodstuffs, groceries, and any other shopping just to keep your card active. Finally, the remaining chunks of your credit score are broken down into inquiries and credit worth ten percent each.
Author Bio: Blair Thomas has been a music producer, bouncer, screenwriter, and for over a decade has been the proud Co-Founder of eMerchantBroker, the highest-rated credit repair merchant account in the country. He has climbed in the Himalayas, survived a hurricane, and lived on a gold mine in the Yukon. He currently calls Thailand his home with a lifetime collection of his favorite books.