Credit scores affect almost every aspect of your daily life but these common slip-ups can ruin it beyond repair.
Most people know not to miss payments or make the most of their credit cards, but there are other very important steps to take to ensure a strong credit score,
Equifa shared a list of some of the most common mistakes, and the effects they can have on credit.
Late payments leave permanent damage
Contrary to popular belief, a late payment can stay on the Equifax credit report for up to seven years. It will remain on your record even if you pay past dues.
May be a primary factor in payment history determining your credit score, This means that it can have more impact on your credit score than other aspects.
pay only the minimum
Paying only the minimum on your monthly credit card payment is better than not paying, but it’s still harmful.
The higher the balance on the credit card, the higher will be the interest. Keeping your balance high will increase the interest you pay, which will cost you more over time.
Over time, making larger payments is worth it when you can reduce the open balance and interest payments.
leave your accounts open
Once the credit card is paid off, you should leave the account open.
Closing an account sounds logical, but it can raise your debt-to-credit ratio and ultimately lower your credit score.
Account closure can also change the variety of credit accounts commonly seen by lenders when reviewing applications.
If the account has been open for a long period of time, closing it can also reduce the average of your accounts, which can also lower your score.
Check Your Credit Score Monthly
Whether you applied for a new card or mortgage last time, you should keep checking your credit score monthly.
Scores can fluctuate for many reasons and it is important to know where you stand. Assuming your score hasn’t changed can lead to big surprises and hard work to get it back.
When applying for a new credit card, make sure you understand how and when the initial interest rates will change.
If you’re not sure what you can afford after the first few months, you may end up paying more.
How can I check my credit score?
There are many ways to check your credit score — and you don’t have to pay for them.
For example, many credit card companies, banks and lenders have started providing credit scores for their customers.
This can be on your details, or you can access it online by logging into your account.
What is a Good Credit Score?
FICO, the most widely known credit scoring system, and its rival VantageScore, both use a range of 300–850 points.
your credit score higher Well, you have a better chance of getting the best deals.
Below we list what is considered a good and bad credit score according to both the systems.
- Poor: 300-579
- Neutral: 580-669
- Good: 670-739
- Very good: 740-799
- Extraordinary: 800 or more
- very poor: 300-499
- Poor: 500-600
- Neutral: 601-660
- Good: 661-780
- excellent: 781-850
VantageScore was developed by the three national credit reporting agencies.
Whereas FICO has created different scoring models for each credit bureau.
Millions of Americans may get an unexpected boost 100 credit points this summer Thanks for the recent reporting update.
Consumers can add it with more simple tips For getting your credit in a healthy place.