Lenders use your credit score to assess your creditworthiness so they can determine if you’re trustworthy enough to pay off your debts. Staying on top of and managing your credit is the best way for you to ensure you’ll have a healthy financial future. The higher your score, the easier it will be to get approved for a loan. Additionally, properly managing your credit will also help you get better rates compared to someone with a lower score.
These are a few factors that impact your credit history:
- The number of previous accounts opened and closed
- Your total number of debts
- The length of time you’ve used credit
- How well you’re managing your credit and making repayments
- How much do you use your credit or “credit utilization”
- And many more variables
Managing Your Credit in NY
So what does managing your credit entail? Here are a few quick tips you can use to make sure you’re getting the most out of your credit:
- Make payments on time and ensure you’re paying the minimum balance each month
- Don’t exceed the limits of your credit cards, and; keep what you owe under 30% of the credit available to you
- Don’t apply for multiple loans and/or credit cards at once
- If you have foreseeable issues, then reach out to your lender or creditor right away
- Periodically check your credit score; you’re entitled to ONE FREE check every year from the big three reporting companies:– Experian, Equifax, and TransUnion
- Have bad credit? Then reach out to credit professionals to help you remove outdated and incorrect information
Understanding and managing your credit is one of the most important steps you’ll take in improving your life and opening up many opportunities like helping you buy a new car, starting a business, or purchasing your first home.
A good credit score can help make all your dreams come true—and a bad credit score can be a nightmare. Check out our guides and blogs below to learn what your credit score means, how it affects your life, how to build your credit if you have none, how to fix a low score, and much more! To learn more about managing your credit in NY give us a call today at 315-782-0155.