Raise credit scores with good financial management by joymali


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									                  Raise credit scores with good financial management

Credit scores make a huge impact in our personal and financial future.

Any debt left ignored or bills that you didn’t settle all get reflected annually in a
document that is easily accessible by various financial institutions and is used to base
your financial credibility. This credit report is where your credit scores are reflected. The
higher your credit score, the higher your eligibility to qualify for significant loans should
the need arise in the future. Inversely, the lower your credit score, the lower your chances
of being approved for milestone purchases such as mortgages, car loans or even
something as simple as a credit card application.

With lenders, bankers and other financial institutions using it as a reference before
granting important loans, it’s a piece of reference that strongly reflects your credit history
and financial responsibility. Poor credit grades, therefore, cast a bad impression against
your overall reputation; and as a result, prevent us being able to take out important loans.

What makes credit scores to fluctuate?

It’s easy to look towards credit to keep up with the rising cost of living these days; but
it’s also the easiest way to ruin credit ratings. Everyone should remember that credit
cards are not a source of free or unlimited money—it’s borrowed money and every time
you use it, it means it is a debt that you have settle. Given this, try not to spend beyond
your means and use it responsibly.

Credit scores varies according to credit agencies

Three major credit bureaus - Equifax, Experian, and TransUnion offer free annual credit
reports, upon request. Each agency has their own algorithm to calculate the scores, which
bring difference in scores. There are different calculation models used each agency and it
is important to regularly review it for discrepancies and inconsistencies. Feel free to raise
dispute if you come across any errors.

Correct credit report to stay in peace

While the temptation to live a luxurious lifestyle on credit is great, it is not the healthiest
way to go about managing your finances. Living outside of your capability to settle your
credit debts reflects negatively on your credit scores and may lead to your inability to get
approved for important loans. Interest rates on credit card can go up, and this is
something that we all want to avoid.

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