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.
What about high credit card usage, you may wonder? After all, some cards have limits on them, which means that you have to work within them to keep a high score. However, those who have taken part in holiday shopping and the like can tell you that certain limits can be tested, or even broken. If you're looking to keep your score from decreasing, Bob Jain and other financial authorities will stress the importance of careful spending.
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.
What about high credit card usage, you may wonder? After all, some cards have limits on them, which means that you have to work within them to keep a high score. However, those who have taken part in holiday shopping and the like can tell you that certain limits can be tested, or even broken. If you're looking to keep your score from decreasing, Bob Jain and other financial authorities will stress the importance of careful spending.
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 information from Robert Jain, don't hesitate to consult Robert Jain Credit Suisse.
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