Credit History

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Do I Need Debt to Boost My Credit?

Much like no news is good news, no debt is a good thing. But what happens to your credit score when you don’t have debt? The answer is complicated. The short version is no debt can pose a challenge to someone looking to land an excellent credit score. Credit scores are intended to report your credit risk. In other words, they reflect how you have handled debt in the past. But having a high credit score is more complex than simply carrying debt. Understanding the factors that impact your credit score are important. There are many different strategies you can use to increase your score. [Spoiler alert: Going into debt simply to boost your score should be your last resort.] What Factors Impact My Credit Score? A combination of factors creates your overall credit score. Payment history has the biggest impact on your score and recent credit has the smallest.…

How Your Credit Score Impacts Future Financial Goals

When it comes to your credit score, report and history, it’s important to remain vigilant, address issues, spend wisely and make payments on time.   Since your credit score is a reflection of your financial behaviors, your spending power is directly affected by your spending habits. A credit score also impacts your savings and future goals. Staying prompt with credit card payments and other debts will help to avoid a snowball of debt that may become unmanageable. And it will also help to maintain or improve your credit score over time. Establishing good credit creates a world of opportunity and sets you up for a future of great financial decisions. Even if your credit isn’t great, the good news is that it isn’t the end of the world. The Fair Isaac Corporation takes into account all of your credit behaviors, both good and bad. You will have plenty of opportunities…

How To Choose Your Next Credit Card

Credit cards can be a powerful tool or a horrible crutch for your personal finances. To enjoy success with credit cards, account holders have to juggle balances, due dates, minimum payments, interest rates, and other aspects of the account. When managed poorly, credit cards can lower your credit score and lead to thousands of dollars in interest. But when used responsibly, they can improve your credit score while offering valuable rewards like cash back and free travel. Decide if Credit Cards are Right for You Before you worry about which credit card is best, look at your finances and try to understand if a new credit card makes sense for you in general. Based on your past spending habits and experience with credit cards, are you able to manage and track your credit responsibly? Do you always make on-time payments or have you missed a few in the past? This…

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