What is a good credit score and how you can maintain it & how it benefits you.


Banks have instilled among us a hugely convenient service of Credit Cards for long now.  Customers have accustomed themselves entirely to its credit services and know the full-blown logistics behind it. The segment of discussion is around the term credit score- and how it determines our position and entitles us with extra benefits over our credit. We all crave to save money and a low-rate of interest acts as a cherry on the cake. In situations of indulging over valuable objects such as a car or an iPhone- a good credit score helps in covering the insurance and deposits over these. Moreorless,a good credit score equals a good reputation with credit which can be achieved by taking care of these following points:


We do realize how tempting paying credit and moving on can feel, but to stand out one needs a little push of care over handling their payments. The way a good credit score gets decided depends upon an overall estimation of credits’ history, level, and even age. These elements help in assigning a good credit score. The payments history helps in articulating the seriousness of the customer to pay back in time. The type of records and the amount paralleling them, reflect on your credit score. Similarly, an older credit account builds a preference. A responsible holder will oversee his/her reports every now and then. Checking for fraudulent records or misinformation can cause a negative impact if not brought to correction.


This is a no-brainer. Hanging bills for an unaccepted time can prove neglection on your part and result in a bad credit score. While there is no strict rule and few bills can be taken for granted but all bills needs to be paid in the end. It is all about maintaining a good credit report which thrives on cleaning all your bills on time.


There are several decisions the customer hasto make other than a good payments history- the gap between the credit limit and the credit balance. It is always advisable to keep these two as close as possible. First, it would be easier to pay your bills if they don’t outreach your paying capacity. Secondly, it earns you a good credit score. The idea behind being attentive of the limit and balance is a good sign on the credit report. Borrowed money can work wonders if one knows the handling of debt. Debts aren’t a negative if repaid on time. Loans amount to debts which requires paying at regular intervals and sincerity shows upon a good credit report. Just like maintaining a good reputation, anything that hampers the customer image for example- bankruptcies or legal incredibility disrupts the validity of a borrower. Limited and necessary credit accounts provide a compact overview of bills. A systematic approach can be earned when loans and credits are taken when highly required. Timely payment goes without saying but an overall division of bills is also necessary. When one achieves a credit limit- it also secures a responsibility of dividing the balances that can be achieved during the time. Too many loans or debts which exceed 30% of the collective credit limit, even though a capacity to pay resolve to a bad indication. A good credit score once delivers helps in a building an image for that particularaccount which automatically helps the holder with his/her other future accounts. Thus, building a holder’s accountability.


Seniority plays an efficient part in assigning a good credit score. the older credit accounts would always be given preference to the young ones in terms of activity and usage. The history of old accounts adds value to your credibility as a good borrower or credit holder, today.  It is advisory to maintain old accounts to accumulate a better credit limit. Embracing the age of old accounts can be of an advantage because not only it increases your chances to decrease the gap between the credit limit and the credit balance but also validates your good credit score. Although keeping a good score is a process and requires consistency with a high risk of flexibility, it eventually costs less money.

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