A credit score is a mathematical number issued for a consumer for determining creditworthiness. According to the credit scores, credit is issued to the consumers. For example, if any individual is expecting an Unsecured credit card then he must have a good credit score. The Internet has hundreds of articles on calculating credit score but very few on improving credit scores with the help of reviews. That’s why in this blog let’s check how consumers can improve credit with the help of a review of the fit MasterCard, a review of the surge MasterCard, a review of the total visa credit card, assent platinum card review and applied bank secured credit card reviews:
•Create a Budget: Being consumer, the first goal should be to set up a budget according to the financial situation. This way he can figure out the credit he needs. Now he should check out both secured and unsecured cards and how they help. Before this, he should also have a better understanding of the terms involved.
Secured credit cards: While purchasing a secured credit card, an individual has to pay the collateral equal to the credit limit. Accordingly, he can check the credit limit provided and check out how he can improve credit. Secured credit card reviews can help a lot as consumers can check out the insights. These reviews are issued by the experts. They can also tell how consumers can maximize usage without affecting their credit.
Unsecured card: Unsecured credit cards are of two types. These are unsecured cards for excellent credit and unsecured credit cards for bad credit no deposit. As the name suggests, there is no deposit required. Consumers should be careful as if they are unable to repay the credit then the credit scores will be heavily affected.
•Check out the factors affecting credit score: In credit card reviews, experts have mentioned the factors affecting the credit score. By improving these factors, consumers can improve credit scores quickly. Some of them are given below.
1)Payment History: Payment history is the biggest factor (35%) contributing to the formation of credit score. Payment history means the way a user manage the payment of his bills. For example electricity bills, mobile bills etc. This is a very important factor because according to the payment capacity/history, the user is going to pay back. To improve this factor a user should not hold the bills. Also, he should not pay bills in parts.
2)Credit utilization: Credit utilization ratio is calculated by dividing credit used to the available credit. According to many experts, a user should not use more than 30% of the available credit. Using more can make him fall under high category users. The utilization ratio is the second biggest factor as it affects 30% of the formation.
3)Length of credit history: Length of credit history means for how long the user is managing his debt. If he is having an unused credit account then he should not close it. This account can help in decreasing the credit utilization ratio and increasing activity. This affects 15% of the credit score.
4)New credit: Any user should not apply for credit multiple times. Multiple applications can affect their credit score. This affects 10% of the credit score.
5)Credit Mix: Credit mix also contributes 10% of the credit score. Companies like to check if the user is good at handling multiple debts.
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