The consumer needs to have a credit history. A credit history is important as it allows lenders to evaluate how well you have settled your debts in the past. Your credit history also allows them to assess your affordability.
Timeous payments of bills– paying bills on time also helps with a good score. This also goes to small bills that seem to be irrelevant, like the gym or library fee. These small bills might be found on your credit report and consequently affect your credit score.
Keeping credit balances low also helps with a good credit score. Maxing out credit balances might be viewed as reckless and desperate. Credit card balances should be within 30 per cent of all your combined credit limits.
Knowing what is required to get a good credit sore also helps maintain it. Five key pieces of information are used. These are payment history, level of debt, credit age, mix of credit and recent credit.
Paying more than the minimum of what you are asked on your account also helps with a good score. Paying only the required amount might be viewed as distress.
Check your credit sore. Knowing your credit score is important. It helps guard against fraudulent activities on your account. It also allows you to check for any errors in the information presented to Bureaus.