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Credit is a topic that can produce anxiety in many people, however, in today’s modern times, credit is too important not to discuss. Good credit, bad credit, and somewhere in between credit, is all reflected in the numerical “credit score”. While just a few years ago this rating system had not even been developed, it has become the primary indicator of an individual’s ability to make large purchases and access funding.
In 1989 the credit score became the universal system of rating consumer credit, and today, this score is the backbone of consumer purchasing power. Unless you have enough cash on hand to purchase homes, cars, and other major items, your credit score is something to take very seriously.
Potential lenders use your credit score to determine how likely it is that any borrowed money will be paid back on time. Each time you apply for a credit card, mortgage, car loan, personal loan or a refinance, your credit score is checked. This score is also used to determine your eligibility for home rentals, and even certain job openings. With so much riding on one number, it is imperative to understand how to keep your credit score in good standing, and to repair it if it is not.
The higher the credit score, you will have access to better interest rates on borrowed money and better credit card offers. Poor credit scores can bring you high rates and even refusals from credit card companies. Having access to this type of funding, even if never used, is important in the case of emergencies and unexpected circumstances that could potentially bring financial disaster.
Maintaining a good credit score can be tricky, a few late payments on a credit card can quickly add up in not only higher fees but also hits on your credit score. Opening too many accounts, such as a credit card from all your favorite stores, can also lead people down the path to trouble. Fortunately, there are ways to build up your credit and maintain a healthy score so that you can rest easy.
Your payment history, credit utilization, length of credit history, and number of opened accounts, all are areas where your credit score can be boosted or busted. Being mindful of paying bills on time and keeping low credit balances are two good credit building habits to adopt. Being able to show a consistent positive payment history is an important piece of this puzzle. When you have found that you have slipped behind in any of these areas, and that you are having trouble determining how to repair your credit, seeking professional assistance with companies such as Bay State Credit, can provide you a clear path to a better credit score. Professionals at Bay State Credit can tackle even the biggest of credit issues, cleaning up any negative history and developing a plan for positive results. Don’t be drug down by a poor credit score, get the financial assistance you need to get back on track.
