The key to Improve your Credit Score is by managing you different debt and credit accounts.
The credit score degrade with the debt increase, each time consumers fails to make timely payments on several accounts. Bills that are overdue for 60 days or more, are reported to credit agencies, and affect your credit score.
The level of debt can impact your score when it is clear that your income is too low to cover your debts. It is a way to protect consumer to be drowned in debts they cant settle. The more your are due to pay to cover your credit, the less money to pay your bills and utilities.
The ratio Debt-to-income cut off depend from loan type and change with the lenders. The home loan have lower ratio than a car loan. The best way to stay reliable is to pay your loans in time along the year. You don’t want to be refused your home loan for some credit card or car payment that get just paid too late for so many months. A big factor that people don’t realize is the cost of these late payment can turn to an insane amount with the interest rate.
Applying for several credit cards and personal loan in a short period of time, impact your credit score really hard. Bringing up the red flags on your credit history.To Improve your Credit Score you need to keep track of all your credit cards and open accounts. Be sure that you really need all these services, in most case you can close a few of them and regroup payment to make it easier on you.
A good practice is to assess your situation at least once per year, and close these credit cards that cost you too much and that you do not really need.
Some credit issues can stay on your credit record for years, and will reduce your credit scores drastically.
So many people miss the chance to get a home loan, just because they kept several credit cards for years.