Delinquencies on your accounts.
A delinquency is a payment that was made 30 or more days late. None or very few delinquencies on your account can cause your score to improve.
What You Can Do
Keep paying bills on time every month since it is important for maintaining a good credit score. If you remain behind with any payments, bring them current as soon as possible, and then make future payments on time. Over time, this will have a positive impact on your score. Continue reading Positive Score Factors
“Researchers have found that students who felt stressed financially had lower grades than those who did not.”
Credit card debt can add an extra financial stress on students. Normally, credit cards have a higher interest rate than other types of loans. A student with higher credit card debt may have to work extra hours in order to make the monthly payments, thus reducing the time for studying which may affect the performance in school. As credit cards are very useful at times, spending should be done responsibly, so it doesn’t accumulate debt that you cannot pay.
Plan your strategy. As annoying as it seems to be analyzing all details of each credit card and loan you owe, you must do it and preferably write down the numbers.
- Decide which debt you want to pay first: the high interest rate or the lowest balance
- For those debts, decide how much above the required minimum you can afford to pay each month. This will determine how fast those debts will be paid off.
- For other debts, setup automatic monthly payments
If you cannot afford to make the total monthly payments towards your debt, you may want to consider professional advise from a credit counseling company or a bankruptcy attorney
What is Credit Utilization Rate?
It is the percentage determined by dividing how much you owe and your credit limit.
Your Credit Utilization Rate = Your Total Debt / Your Total Available Credit