Credit scores help determine if you can get a mortgage, a car loan, or a credit card, as well as the interest rates which will be applied if you get approved on your credit application. This means that credit scores play an important role in your financial life; because you could be paying higher interest rates if approved or be rejected altogether on your loan applications.
In order to maintain a healthy credit score, you should take the following into consideration –
- make payments regularly and on time
- prioritize your spending and control your debts responsibly
- avoid too many credit applications and establish a fund that can help you during times of crisis, such as a medical emergency.
With these, you’re sure to maintain the health of your credit report and credit score as well as make you a creditworthy person.