Understanding financial matters may be a challenge for many people, but there are a few things that are imperative that we know about– one of these things is understanding credit scores and how maintaining a good credit score is significant to our financial life.
What is a credit score?
A credit score is a three-digit number, usually ranging from 300 to 850, that determines how likely you are t
o be a potential customer to a certain bank or a credit card company. These numbers are based on a level analysis of your credit and payment histories. Having a good credit score will make you eligible when applying for a loan or a credit card. This is why it is crucial that you maintain a good credit score for it determines what financial options you may get from lenders.
The easiest way to boost your credit score
Building a good credit score is not as difficult as it seems– the key to a good credit score is maintaining a good payment history, which basically requires you to pay your bills on time! This may be a bit too apparent but it should make the most sense.
As adults too preoccupied with a lot of things, we tend to miss bills, and that can have a negative affect our credit scores, aside from the fact that late payment fees can be a burden to many people. To avoid late payments and its consequences, keeping track of your due dates must be observed (which might be a handful); this is why it is a great relief that we have Automatic Bill Payment.
An Automatic Bill Pay is an automated process wherein a cardholder can authorize a bank to send payments to a merchant or a service provider scheduled on a predetermined due date. This can be used to settle recurring payments such as monthly utility bills, car payments, gym fees, and mortgage. Once payments are organized and set up, you won’t have to manually log in or call to pay your bills every month. Using this will drastically simply your financial life and considerably help you boost your credit score without requiring effort on your part.
Automatic Bill Pay will definitely improve your credit score, but it is also important that you practice other ways to maintain a good credit score.
- Limiting requests for new credit
- Reviewing your credit reports
- Avoid closing accounts
With making use of Automatic Bill Payment and observing these simple habits, you can easily raise your credit score in a short period.