Anyone who is focused on finance can tell you that credit scores matter. Some people rely on these to receive loans, while others simply enjoy having this peace of mind that others might lack. Whatever the case may be, it's important to understand the ways in which your score can be damaged, so that you can make it a point to avoid them. With the help of Bob Jain, here are 4 of the methods in question that you should take into account.
To start off - and companies like Bob Jain Credit Suisse can agree - those with low credit scores tend to be those who make payments later than their due dates. This might go without saying, especially for most bank customers, but it's easy to see why banks place emphasis on this. When someone makes payments on time, they are viewed as more dependable. As a result, their scores go up with each timely payment.
You should also know that credit card usage can impact your credit score in certain ways. For example, you might be out holiday shopping, which is where most tend to go beyond their limits. When this is done to an excessive degree, it's easy to assume that your score will be negatively impacted by it, since you're not working within the limits given to you. This is yet another way to keep your score on a strong level, and Bob Jain can agree.
Another way that your credit score might be damaged is by applying to one line of credit too many. Yes, there are certain benefits associated with store cards; why else would people apply for them when having their times checked out? Nonetheless, you have to consider that applying for one too many can negatively impact your score. Be careful about what you sign up for, since you may not know how it can affect you in the financial sense.
Finally, ignoring your financial responsibilities in general can lead to a lower credit score. For example, let's say that you have received a parking ticket, with a specific amount to pay off. If you find that you cannot cover said amount, for one reason or another, you might ignore it. This is nothing short of a concern, since it can damage your score in the long term. There are ways to work around such issues, but ignoring them should be considered a no-go.
To start off - and companies like Bob Jain Credit Suisse can agree - those with low credit scores tend to be those who make payments later than their due dates. This might go without saying, especially for most bank customers, but it's easy to see why banks place emphasis on this. When someone makes payments on time, they are viewed as more dependable. As a result, their scores go up with each timely payment.
You should also know that credit card usage can impact your credit score in certain ways. For example, you might be out holiday shopping, which is where most tend to go beyond their limits. When this is done to an excessive degree, it's easy to assume that your score will be negatively impacted by it, since you're not working within the limits given to you. This is yet another way to keep your score on a strong level, and Bob Jain can agree.
Another way that your credit score might be damaged is by applying to one line of credit too many. Yes, there are certain benefits associated with store cards; why else would people apply for them when having their times checked out? Nonetheless, you have to consider that applying for one too many can negatively impact your score. Be careful about what you sign up for, since you may not know how it can affect you in the financial sense.
Finally, ignoring your financial responsibilities in general can lead to a lower credit score. For example, let's say that you have received a parking ticket, with a specific amount to pay off. If you find that you cannot cover said amount, for one reason or another, you might ignore it. This is nothing short of a concern, since it can damage your score in the long term. There are ways to work around such issues, but ignoring them should be considered a no-go.
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For more financial details from Robert Jain, feel free to contact Robert Jain Credit Suisse.. Also published at 4 Credit Score Mistakes, With Bob Jain.
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