Everything about a Good Credit score

7 Best Tips To Maintain A Good Credit Score | Daily Finance Facts

‍When you get a credit card, one of the first things you’ll need to do is improve your credit score. That is you have to maintain a good credit score. Because A low credit score can have a number of negative consequences: It may impact your ability to get a loan or a job. It may also affect your ability to get a mortgage, a school loan or a car loan. A high or Good credit score not only means that you won’t be turned down for loans or credit cards, it could even help you build up your credit score. That’s why you have to maintain a good credit score.

improve credit score-7 Best Tips To Maintain A Good Credit Score | Daily Finance Facts

A credit score is a three-digit number that is calculated from information on a credit report and generally ranges between 300 and 850. A good credit score is 670 to 739 in the FICO Score range, while a credit score of 661 to 780 is good on the VantageScore range.

Keeping good records and reporting timely repayments are two other things that are important with regard to improving your credit score.

Here’s everything you need to do to make a good credit score and what it means in the long run.

1. Improve your credit score by making regular payments on time

There are a number of ways to improve your credit score, but the easiest and most effective is to make regular payments on time. The average credit card company will consider a credit card payment made less than 30 days ago as a missed payment, which will affect your credit score. Payments that are less than a few days late have a lower impact on your credit score than late payments that have been months or years old.

7 Best Tips To Maintain A Good Credit Score | Daily Finance Facts

2. Report negative transactions

It’s one thing to fill out a credit application and have it denied. It’s something else entirely to report a supposed “negative” transaction – something that you didn’t notice until you got a report and saw a balance report. For example, if you miss a payment or miss several payments over time, the credit bureaus will report it as a negative transaction. You can report a “negative” transaction by writing it down on paper and then mailing it to the bureau that runs your credit report. Be sure to include the date, time and payment amount.

3. Ask for a credit report each year

It’s not a good idea to just rely on your credit report each year to satisfy your curiosity. A credit report is only as good as the information that is reported and the credit bureaus are constantly adding new data. Some of the newer information, like your online banking transactions, can be reported as “negative” even though you did not make those transactions on that account.

credit report-7 Best Tips To Maintain A Good Credit Score | Daily Finance Facts

4. Stay on top of your finances

The credit bureaus don’t publish a list of the most important financial reports that you need to know. It’s possible to get all of the reports on your own, but it’s more difficult, and more expensive. The best way to stay on top of your finances is to use a credit monitoring service. These services will let you know if there are any new reports on your credit and you can request a free report each year. Some of the most popular credit monitoring services include:

5. Don’t use high-priced credit cards

There are many credit cards that carry high annual fees and don’t offer much in the way of benefits. These include credit cards with: Excessive fees: Some of the most expensive credit cards also have the most restrictive rules. Look out for cards with annual fees of $95 or more. Low interest rates: High-interest credit cards are not the best way to build credit. Look for lower-interest cards.

6. Find out if you have bad credit

It’s important to consider your credit score along with others’ when you’re looking to build a credit card loan or a home loan. If you have a bad credit history, the credit bureaus will flag it when you apply for a loan or a credit card. This can significantly affect your ability to get a loan and even your ability to get a mortgage. If you have a history of late payments or other financial troubles, lenders will also know this and will likely charge more than is necessary for you to make the loan.

7. Do not cancel or change old credit cards

If you have been a credit card customer with a card issuer for a while and have been paying your bills on time, the card issuer may ask you to cancel your old credit card and take a new one wherein he/she may also give you attractive offers. This is something you should avoid.

Bottom line

Improve your credit score by making regular payments on time, reporting negative transactions and asking for a credit report each year are all things that lenders will appreciate. But, they are also things that any responsible debtors will do. If you’re feeling overwhelmed by bills and debt, or you’ve just found out that your ex-spouse is still actively paying bills that belonged to you and your kids, it can be tempting to try to tackle them on your own. But, that can lead to even more debt and, in some cases, can make matters worse.

By working with a professional debt consolidation loan lender, you can benefit from the assistance that you need and make smart, long-term debt reduction decisions. Keep in mind that building and improving your credit score doesn’t happen overnight and may take months or even years. The sooner you start, the easier it will be to make a difference.

Did You Like the Article? Please Share:

Share on linkedin
Share on facebook
Share on twitter
Share on pinterest
Share on reddit

Read More from Same Category

Free Slot Games Online Many players prefer playing free online slot games due to their

Read More