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.
Next, using your credit card to a tremendous extent can reduce your score in the long term. Let's say that you're out holiday shopping, and you wind up spending more money than what your limit would allow. What happens, as a result, is that your score decreases, since you're not working within the limits that have been given to you. This is careful spending must be exercised, and Bob Jain can stress this point as well.
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.
You should also know that your financial responsibilities can be ignored, which can hurt your credit score in the worst of ways. It doesn't matter if you have a parking ticket that has been unpaid, a bank statement that hasn't be covered, or what have you. Each of these components can spell disaster for your score, meaning that they cannot be left by the wayside. By focusing on these problems as soon as possible, chances are that you will be better off.
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.
Next, using your credit card to a tremendous extent can reduce your score in the long term. Let's say that you're out holiday shopping, and you wind up spending more money than what your limit would allow. What happens, as a result, is that your score decreases, since you're not working within the limits that have been given to you. This is careful spending must be exercised, and Bob Jain can stress this point as well.
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.
You should also know that your financial responsibilities can be ignored, which can hurt your credit score in the worst of ways. It doesn't matter if you have a parking ticket that has been unpaid, a bank statement that hasn't be covered, or what have you. Each of these components can spell disaster for your score, meaning that they cannot be left by the wayside. By focusing on these problems as soon as possible, chances are that you will be better off.
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For additional fiscal information from Robert Jain, feel free to consult Robert Jain Credit Suisse.. This article, 4 Credit Score Mistakes, With Bob Jain is available for free reprint.
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