|Posted by Percy A Lowe on March 9, 2013 at 11:00 PM|
In today's time the credit score has became the key factor to not waisting money. When you can achieve the things in life with no money down, zero interest, and no deposit. Then you are starting off on the right track ahead of your debt. Now, that how you carry out your wyas of handling your debt effects your credit score. One of the major keys is understanding the credit score model. No, one teaches the model to consumers to help educate them.
If you're interested in building your personal credit profile you have made an excellent step in the right direction. Those that carry the highest credit score are much more favored and preferred than those with lower FICO scores. The benefits can include lower interest rates, higher loan amounts, longer periods of an amortized loan, and many more advantages that can save you hundreds of thousands of dollars.
A big untold secret comes from the tip to always pay down your credit card every month. This is only partially true. It is important to service you debt every month and pay off the minimum payment but you must actually keep debt on your card! This is shocking to many but it's true. The more you can show lenders that you can handle debt, the more responsible and credit worthy you are perceived. If you're going after the highest credit score, you'll want to use this helpful time regularly.
Even if you are only carrying $1 per month, it will still work. I carry $1 every month after paying down my card. This way I do not have to pay interest to the creditors and I can still show that I carry a debt on a monthly basis and service my cards properly.
The next most important tip for building the highest credit score is to always check your credit report on a regular basis. This way there is no way you can get cheated by random credit decreases, higher interest rates, or identity theft. These problems happen on a regular basis and are very unpredictable yet highly common.
Categories: Building Credit Score