Line of Credit and Credit Score Improvement

Line of Credit and Credit Score Improvement

Things like opening a new credit card could be both useful and negative for the credit score. Below is a discussion on the basic ideas of credit score maintenance and improvement.

Building Credit

FICO scores are the most widely used credit scores. There are different credit agencies producing credit scores that use different criteria. This does not have any importance unless you have a credit. Getting a credit card is the initial step towards building your credit score and getting credit. However, make sure you do not make an excessive number of requests as this would go down as a negative remark among lenders.

Timely Payments

A line of credit is not useful if you are unable to make timely payments. A late payment can bring your score down significantly. An average score of 680 could come down by 60 or 80 points upon late payment. This could negatively affect your ability to get small loans of different types. Therefore, always make sure you remember the payment dates if you want to maintain a good credit score.

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