In today’s economy, your credit score holds more importance than ever before.
This three-digit number has the power to dictate your financial health and secure your access to various opportunities. Whether you are looking to buy a home, lease a car, or even apply for a job, your credit score plays a crucial role in determining your eligibility and the terms you’re offered.
Forbes Article “Your One-Stop Shop For How Credit Scores Work”
Here are a couple of things you should work on.
- Don’t let your credit card balances go over 50%. They say 30%, but who listens to that? If you keep under 50%, the negative impact on your score will be less drastic
- Don’t close old accounts. Even if you don’t use them, leave your accounts open to help with credit history
- Get a small personal loan even if you don’t need it. This will boost your credit depth, and it looks good to the banks when you need to get a big loan in the future. Use the loan to pay back the loan. You will get charged some interest but there is a cost to building your credit. In some cases, you can deduct this interest as a business expense, if you own a business.
For more information, connect with our bookkeeping experts at Credit Connections BOOKS.
All this being said..Make sure to PAY YOUR BILLS on time. Late payments are very detrimental to your credit score, AND they are not easily removed from your credit history. As a matter of fact, a late payment can cost you up to 120 points, even if you are one day late. Keep in mind that it takes companies 1-3 days to process your payments. So, if you pay the day before your payment is due, chances are your payment will be late.
Remember, your credit score is vital because it serves as a reflection of your financial behavior and responsibility. If you need help with your scores or building your already good credit for future ambitions, connect with us today for a FREE credit consultation
Wishing you financial success,
TJ Taylor, Owner
Credit Connections Denver
