If we have credit, it is only normal that we develop our credit history from it. And with our credit history, we have what we call our credit score, a numerical representation of our creditworthiness as a debtor. If we have good credit and we have a high credit score, it will be very possible for us to take loans and credit cards. It is how we take care of our credit history that predicts our future with loans and other types of credit. So, even like an everyday tool that we have, the credit card, will be a good training ground so we can develop good credit history.
How can managing my credit card bills affect my credit score?
If you are able to manage your credit card bills well and make sure that you are doing your obligation as a debtor then you will have a high credit score. Your credit card provider will recognize your effort and give you good reviews. This will help in evaluating your creditworthiness and that is through your credit score.
How can it also affect my credit history?
Of course, if you have a high credit score, you will have a good record. A good credit history is what lenders are looking for. You will have more chances of being approved a loan or a new credit card. This will also give you high credit limits that you can use maybe for emergency purposes. So, when you manage and take care of your responsibility as a credit card holder, you will definitely build a good credit history.
If I screwed up on making payments on one of my credit cards, will it affect me getting a new loan or a new card?
Yes, especially when this incident is reported to the credit bureaus. Whenever you become go past your due date, lenders usually give you a grace period giving you chance to pay your debt. If you were not able to do so and you were reported, this will show up on your credit history and will be a bad record. Lenders and credit card holders do not want to have customers who are always late on their payments so it will decrease your chance of being approved and even lower your credit score.
How can I increase my credit score when paying my credit card bills?
Just pay your bills on time and as much as you can, avoid fees. So, if you are able to pay off your balance every month, the better. This will help increase your credit score.