There are many ways you can improve your credit score. One of them is to own a couple of credit cards and regularly make payments on or pay off your balance, covering more than the minimum due, to show that you are reliable and can be trusted with credit. If you do this routinely and don’t let other accounts go delinquent, your credit score will reap the rewards.
Your credit score gives you buying power and determines how much you will pay for that buying power now and over time. Increasing your score just a few points will make a difference in both of those areas too. If your credit score is high enough, you’ll have no problem qualifying for lenders’ best rates on everything from credit cards to auto financing, home loans insurance and even small business loans should that be a goal or desire.
Keeping your credit card safe is your responsibility. In many cases of credit card theft, you’ll be protected from owing the debt. However, if it can be proven that you’ve been negligent in keeping your credit card safe, you might find yourself liable for the cost of all fraudulent transactions made on your account if you lost the card.
From lenders to landlords, to insurers and utility companies, and even employers… many entities and organizations check credit and credit worthiness before deciding to do business – or have a relationship of any kind – with you. Most often, they perform this check by asking for and receiving your credit score.
You may be surprised to note there are at least 7 elements worthy of consideration when you take out a new credit card. Of course, interest rate and balance transfer details are important. However, to judge a new credit card on just one or two options could easily result in a bad deal for you.
Credit is also necessary for other kinds of financing too. And good credit means you can not only get financing for big purchases that you want or need like an automobile or home, but you will get better rates. Thus, while bad credit can lock you out of certain big purchases because you won’t qualify for credit, it can also cost you A LOT MORE in terms of deposits, down payments, interest and fees to use that credit.
Your credit score is one of your greatest financial assets. If your credit score is high, you will have more financial opportunities, as well as lower rates and fees that will save you money. The big “mystery” however, is how to get and keep a high credit score. Well, if you want to get, maintain or restore a good credit…
By now, you likely understand the importance of good credit. Whether shopping for a new home or automobile – or just searching for the best deal on insurance – your credit score will likely influence not only your ability to get what you want but how much you pay for it now and over time. Bad credit habits or a bad payment history will resort in a low credit score.
Businesses know people will be less restrained in their spending over the holidays, more than any other time of the year. It’s possible you are one of the many who have suffered from post-holiday stress and regret caused by over-spending over the holidays in the past. The good news is that just a little information and awareness can prevent this from happening again in the future.