When it comes to your credit score, it is crucial to understand the importance of keeping it high. Credit scores are a reflection of your financial accountability and responsibility. Therefore, banks, credit companies, investors, businesses, etc., can be concerned if you have a low credit score.
Credit scores typically reflect the number of late payments you make, the type of and number of accounts you have, the total debt you owe and public records. There are ways to check your credit for free each year and this will show you all the negatives you may have on your account and your debt to credit ratio. Your debt to credit ratio is also an important factor when determining your credit score.
If you have debt and need to build up your score, you want to continue to pay off your debt with no late payments. Late payments are penalties to your score as well. Keep your accounts open and in good standing to as well and try your best to keep on top of bills. To help you with this set up payment reminders.
Having a bad credit score will reduce your chances of getting a loan for a house or car and will have your interest rates skyrocketing.
Don’t get yourself stuck with a bad credit score, it will haunt you for a long time.
