To maintain a creditworthiness higher than 700, so that you are eligible for comfortable conditions and conditions on loans and credit cards – it is recommended to take a number of steps. You must mainly take all the accounts on time. It is even recommended to make a car payment to ensure that you miss no payment. In addition, one should keep credit utilization quite low – ideally below 30 percent to maintain a high creditworthiness. High Credit Worthiness: Follow these steps I. Pay in time: One of the most important factors is the history of payment. At least try to pay the minimum before the expiry date on credit cards, loans and aid programs. It is recommended to draw up automatic payments or reminders to avoid missed payments. Ii. Keep credit utilization low: You should be aimed at using less than 30 percent of your total credit limit. In fact, it is suggested to keep it below 10 percent for good results. Iii. Avoid opening too many new accounts: Each credit application causes a hard examination that can temporarily lower your score. Not many people are aware that the new accounts are also lowering your average age of credit, which is a factor in your score. Iv. Maintain a long credit history: You must keep old accounts open, especially if they have no fees. The length of credit history also weighs your creditworthiness. V. Diversify Your Credit Mix: Credit mix indicates your ability to manage numerous categories of credit (credit cards, student loans and car loans). Typically you don’t need every kind of credit, but it is better to have a healthy mixture. VI. Keep the balances low on revolving credit: Even if you pay in full, large reported balances can harm your score even before your payment posts. Try to pay for the state’s closing date to report a low balance. Vii. HARD INQUIRIES: If you apply for too many loans, it leads to hard inquiries. And too many queries within a short time can lead to a credit risk. At the same time, soft queries do not affect the disclaimer of your score: Mint has a fusion with fintechs to give credit, you must share your information if you apply. These bonds do not affect our editorial content. This article only intends to educate and distribute awareness about credit needs such as loans, credit cards and creditworthiness. Mint does not promote or encourage credit as it has a set of risks such as high interest rates, hidden costs, etc.
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