Did you know that your credit score has an impact on your financial activities in the long run? Well, more often than not, if not managed properly, your credit card score can lead to financial issues.
Haven’t we all grown up hearing the phrase, “A stitch in time saves nine?” It’s time to bring that into action by monitoring and building a strong credit score. Be it your loans or credit card limits, it impacts them all.
In order to achieve this, it’s important to monitor certain financial factors on a regular basis. From avoiding any delays in payments to monitoring credit reports, there’s so much that goes into curating this financial discipline.
But don’t worry! We’ve got everything you need to know here. In this article, we shall talk about 3 tips to help you maintain a good credit card score.
Alright, let’s dive right into it!
1. Clear Your Payment Dues On Time
Do you tend to miss out on your payments or mix up the due dates? Well, don’t be stressed. You are not the only one!
But at the same time, there are some things that one just cannot afford to get lazy with. By simply clearing out your payment dues on time, you can strengthen your credit card score.
And by payment dues, we are referring to any form of loan or monthly repayments. All of these payments must not be postponed, as it has a negative impact on your credit report derived from the Credit Bureau Singapore (CBS).
But how do you keep a track of it? Is that too much work in too little time? Just begin by jotting down all your payments with their due dates on a monthly task sheet. Once you are done with this step, go ahead, set up reminders on your phone and payments can be made via GRIO. After all, e-banking is a blessing in disguise!
And voila! You are good to go!
2. Avoid Credit Card Score Risk Factors
It’s often said that risks are the path to success but when it comes to evaluating your creditworthiness, this is quite not the case.
By avoiding a few risks, you can simplify your path to building a strong credit score. But what exact risks should you avoid? A list of variables are taken into account while evaluating your creditworthiness in your credit report. A few of these include credit exposure, delinquency presence, and adverse credit history. Even too many enquires may impact credit risk assessment!
This begs the question, “How can you and I avert these risks?”
The answer is simpler than you think. Make a mental note of these characteristics and attempt to improve your credit score over time. For example, if your credit report indicates that you have “heavy credit usage,” keep track of the number of loan applications you make each year.
3. One Loan, One Time
No matter how redundant the phrase “One step at a time” sounds, it holds true in every sense.
And since we are talking about money here, it includes taking one loan at a time to avoid missing instalments or falling into debt traps.
But why? Why are loans an important factor in assessing your credit card score?
Here’s the thing: when you borrow multiple loans, it gets the indication of a cash flow issue. So, a good way is to not keep multiple loans one after the other. Thus, the key here is to get back to the basics! Prioritise your necessities and take loans accordingly, and your credit card score shall remain fine.
Sounds like there’s so much that you need to take note. Take a pause, breathe in and out as we sum up the essence in a nutshell.
While it’s important to prioritise your payments based on their proportional importance, it’s always recommended to keep your long-term financial health in perspective while making all your key financial decisions.
So, if you haven’t done so already, now is the time to take a step forward in this direction! Evaluate your credit report and devise a financial strategy by bearing in mind the above-stated three steps to safeguard your credit score during this period of uncertainty.
Like always, this time too, we have a tool to make your life easier! With SC Mobile you can now monitor your finances with a few simple taps.
This article is brought to you by Standard Chartered Bank (Singapore) Limited. All information provided is for informational purposes only.