How To Play The Credit Score Game
Most of us know that a good credit score is very important, even critical, to getting good terms for a loan or mortgage, or a lease on a car. Having a bad score will even lock us out from securing said loan or mortgage, or even hinder a job we’ve been aiming for. But how does one play the credit score game? A lot of us juggle bills and other expenses against a meager income, so a credit card is a vital tool that keeps us going in our day to day lives. However, mismanaging its use can lead to a bad credit score. A surefire way to help maintain your score is to pay when your credit card bill is due, and to pay at least the minimum amount. But that’s not all, how you utilize the amount available is also taken into account. A credit card account with a consistent balance of more than 75% percent of the allowable amount reflects negatively on your credit score. On the other hand, one with a utilization of 35% or less marks you as a low risk credit card holder.
If you are having trouble paying your monthly credit card payments, a lifestyle change is in order. Cut up your cards but keep the accounts open until you get to pay off your debt. Another metric credit scoring companies use to monitor your creditworthiness is monitoring your phone and utility bills. As with credit cards, pay these on time so that you are not flagged as paying past due.
It also is to your advantage to purchase a credit report once a year to monitor your credit score. This is even more important if you have been struggling with your bills, as it will give you a benchmark from you can start improving your score. It will also help you review the scoring process and contest things that are inaccurate. Regaining a good credit score is a long process, and it takes patience and sacrifice. Pare down your debt, adopt a more frugal lifestyle, pay your bills when they fall due. If your credit card account has been closed, you can still obtain a secured credit card. Having this will also help you rebuild your credit score.
Be wary of companies that claim to improve your credit score for a fee. Only creditors can make the reports that will impact your credit card score. Remember, building, or rebuilding, a good credit score takes good financial management and patience. Contact Rakhi Madan if you need a Brampton Mortgage broker to help you get a mortgage today.