Financial advice: how to get and maintain good credit score!

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You can be denied of a serious loan if you have bad credit and if you do get an approval, it’ll be with a very high interest rate. The amount of the loan is low too. Good credit can help you with a car loan, home loan, student loan, personal loan, credit card and more. If you ruin your credit, you will find it very difficult to obtain any loan for a low interest rate and high balance. It’s important to build your credit history and maintain good credit. If you have bad credit you can try to re-establish your credit. You can even raise your credit score with the help of an attorney. You have to pay them a fee and they can remove things from your credit report. You can raise your credit score within a year but your history will remain on your report for at least ten years.

You have to be cautious when it comes to using credit and maintaining your credit. This is very important if you’re going to buy a home or need to loan from banks. You can be deny of a loan based on your credit score if the loan is for a high amount. It’s difficult to get a high amount of loan with a low credit score and if you do it’ll be with a very high interest rate. The interest rate can be as high as 20% on a car loan where a person with a good credit score can get it for 2% interest rate. A high interest rate will raise your monthly payment whether it be a car loan or a home loan.

It’s important to maintain a great credit history and don’t tamper with it. How do you maintain good credit? You can apply for a few credit card with well known company like American Express or Bank of America and then use to pay for all of your purchases so you can establish a credit history. You can pay them off at the end of the month so you don’t have to pay for any interest charge. If you pay them off at the end of the month, it’s like using cash but now you have establish a credit history for yourself. The longer your build your credit history the higher the credit score. A credit history that is five years long is better than one year long. You should establish a credit history when you’re young so that when you’re older you will have a long established credit history. A good credit score is vital when you’ll taking out loans. Since it’s so important to have a good credit history, you should make it a priority to keep it in top shape.

You should only get a few credit card instead of many cards because the more credit cards you have the higher your debt will be and that won’t look good to a lender. A lender will think that you have too much debt to satisfy and that will be a minus for you. You should only have two to three good credit card with high limits from reputable company. You should put everything on your credit card instead of cash and pay off the bills at the end of the month to avoid interest charge. You can also let some amount roll over for a couple of months just to build your credit history. The lender wants to see that you made your payment on time every month and even one missed payment can look bad. You should try to pay it on time every month. The most important thing is to make on time payments. You should also carry a low balance each month because if you spend too much a lender will think that you’re too dependent on credit cards. It can look negative if you have a high debt. You should try to lower your debt and have less than a couple of thousands each month as debt.

Anything that you do with your credit card will remain on your credit report for ten years so you should be scrupulous about it. You should try to pay off all debts because any derogatory debt will lower your credit score significantly and it’ll be on your record for ten years. Lender will see this as a negative thing when it comes to looking at your credit report. In order to maintain good credit, you will need to spend your credit card and then pay the bill on time each month.


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