Whether you’re looking for a car title loan or any other type of personal or signature loan, one factor that’s going to remain vital is your credit score. This measure, usually using three different scores from some of the largest credit bureaus, can help determine everything from the types of loans you’re approved for to the rates you’ll find yourself paying in interest.
At Utah Money Center, we can help people in varying credit ranges get the best possible loan available. Here are some tips for keeping your credit score high.
Don’t Miss Payments
One of the easiest ways to lower your credit score in a hurry is to miss payments, both for credit cards themselves or for many other kinds of bills. Every time this happens, your score will be dented. Staying organized and planning payments in advance is therefore vital – and it’s easier than ever in today’s modern times with online banking available. Stay up to date on your line of credit and the limits you’ve set for yourself, and you should be in good shape.
Setting these precise limits can be confusing for some people, so here’s a simple “20-10” rule: Never allow credit debt to rise above 20 percent of your yearly post-tax income, and never use more than 10 percent of your monthly income to pay off credit debts. If you can be even stricter than this, do it. The more flexibility, the better.
If you’re in an emergency situation and your only funds available are via credit, your credit score could be in for a long term dent. Try to keep at least 15 percent or more of your available credit open for these situations, and if possible, try to keep separate emergency funds so you don’t have to rely on credit if something unexpected happens.