Believe it or not, your credit score is one of the most important factors of your financial situation. It can impact whether or not you receive a loan, and it could play into how much you can spend on a regular basis. In any event, some events can actually damage your score, meaning that it will take time until it's rebuilt. In order to save yourself the headache, here are 4 talking points that you'd be wise to consider, courtesy of Bob Jain.
If you'd like to know what can hurt one's credit score, late payments rank highly. According to companies such as Bob Jain Credit Suisse, those who make payments later than they are due tend to have their scores fall over the course of time. Banks want customers that are dependable, in this respect, which goes without saying. Of course, late payments is just one of the many puzzle pieces that make up the bigger picture.
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.
If you'd like to know what can hurt one's credit score, late payments rank highly. According to companies such as Bob Jain Credit Suisse, those who make payments later than they are due tend to have their scores fall over the course of time. Banks want customers that are dependable, in this respect, which goes without saying. Of course, late payments is just one of the many puzzle pieces that make up the bigger picture.
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.
About the Author:
For additional fiscal information from Robert Jain, don't hesitate to contact Robert Jain Credit Suisse.. Unique version for reprint here: Bob Jain: 4 Ways Your Credit Score Can Fall.
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