What Helps Your Credit, and What Hurts It

credit_report_magnifying_glass1Developing a good credit history is one of the best things individuals can do to improve their overall financial health. Having access to credit, whether it be small loans, credit cards, and even qualifying for a mortgage will not only save you money, but will allow you to buy the things you want in life. However, one of the biggest and most unfortunate things that befalls most Americans is that they do not understand exactly what helps or hurt their credit score. Here is a quick overview of what can help or hurt your credit.

Spending more than 30% of your Credit Limit
One of the biggest unspoken rules in regards to developing a great credit score is to make sure that you do not go over 30% of your credit limit. If you have a credit card with a limit of $1,000, going over $300 tells creditors that you are relying too much on credit and are using credit as a source of income. If you are a Florida small business, make sure that you have a credit card that doesn’t charge a bunch of fees when you run transactions. Payment processing services can run up a lot of fees on your cards, making you go over your limit. Work with a reputable Florida credit card processing company to avoid these hefty fees.

Paying Late
Late payments report negatively to your credit report. Do your best to ensure that you are making your payments on time and that you are paying off debts well way before the monthly due date. Creditors report payment history every month to credit bureaus.

Too Many Inquiries
If you decided that you would like to open up a new credit card, avoid apply to many credit card companies at once. Multiple inquires can signal that you are in need of money, thus sending alarms to credit card companies and banks that you are a high risk for defaulting on credit cards. Stick with reputable big banks and credit card companies. Smaller credit card companies might be subject to hefty fees associated with payment processing services. If you are a Florida-based small business, work with a reputable Florida credit card processing service to determine the best card for your small business.

Shop around
One of the best things you can do to ensure you don’t get ripped off when it comes to getting a credit card, whether you are a business or an employee is to find the best card with the best interest rates and incentives. If you are a Florida-based business, you should work to find the right card that will give you affordable rates, especially when it comes to payment processing services. Work with a reputable Florida credit card processing service to make sure you are getting the best bang for your buck.

Take out a small loan
One of the best things you can do to help improve your credit is to work to take out a small loan. Using these loans can show creditors that you are worthy enough to buy thousands of dollars and slowly pay back the loan within timely fashion.

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