Credit scores control so much in your life, you cannot ignore them. They determine whether and how much you’ll pay for a security deposit, interest rates, and insurance premiums. Credit scores influence approval for an apartment, home, car, or even employment and job promotions because lenders and employers look at credit.
- Paying your bills on time is the single most important factor in determining your credit scores. Even one 30 days late payment reported to credit bureaus will drop scores for 24 months. Put bills on autopay so you will never be late.
- Establish 2-3 accounts that are reporting your payment history. Debit cards will never build credit.
- Keep your credit card balances low. Never owe more than 30% of your credit limit. If you want even higher scores keep your utilization at 10%. This means if you have a $1000 credit limit never owe more than $300, and for a higher score keep that balance at or below $100.
- Length of time matters. Do not close credit cards that you’ve had for more than 2 years, this will DROP YOUR SCORES. Use that card every 3-4 months and payoff balance immediately.
- Never Co-sign a loan for anyone. If they don’t pay, you’re on the hook for that debt. Their mistakes can become your PROBLEM!
– Many consumers hardest hit by the pandemic are being blindsided with another problem that could further hurt their financial futures.
The CARES Act, passed by Congress last March, allowed many consumers to defer payments on certain mortgages, loans, and credit card debt. But some companies have erroneously reported those deferred payments as late, and that is a big problem. If this has happened to you reach out to me I can help.
FREE GIFT–7 Ways to Improve Your Credit Scores https://bonitawhite.com/credit
@BonitaLynnWhite