While your shopping habits won’t affect your credit scores, other factors will. These include your payment history, the total amount of debt that you currently owe, the length of your credit history, or how long your accounts have been open, types of credit; meaning your mix of accounts, such as credit cards, student loans and car loans, and searches for new lines of credit also known as hard inquiries.
You’ve probably heard you need to have good credit, but do you know why? Good credit isn’t just about getting a credit card – it affects a lot more. Your credit history can affect everything from your insurance rates to the type of house you can rent or buy to whether or not you land your dream job. Read more about having a good credit score and stable credit history at our site.
You can survive with bad credit, but it’s not always easy and definitely not cheap. Having a good credit score will help you save money and make your life much easier. You can read more about the benefits of having a good credit score at our site. The knowledge you receive there will enhance you with the understanding of why keeping a good credit score should be appreciated.
With a shaky credit history, you’ll probably avoid making new credit cards or taking loan applications because you fear you’ll be turned down. Having an excellent credit score doesn’t guarantee approval – because lenders still consider other factors like your income and debt – but it does give you a very good chance of being approved. When you decide to apply for a credit card or loan, you can do it with confidence.
Credit age is another factor that’s given much importance. After you pay the debt off, if you consider clearing or closing your credit card, it’s like clearing your history of credit, having a history, whether good or bad, is certainly better than having no history at all. To tackle this measure, leave the account at zero, this improves the average credit age you receive, which will certainly benefit you in the days to come. Read more about keeping credit cards open at our site.
Lenders, before giving a certain amount as a loan,checks the account history you have,it’s common industry practice to analyze the data for trends. Several issuers offer cardholders annual summaries of their spending that categorize purchasing by type of merchant and amounts spent. This factor considers if you have credit accounts, instalments, or revolving credit.
Read about the factors to look for before going for a new purchase at our website.