Knowlopedia
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- Credits
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The benefits of having good credit are extensive. Having a good score will help you get approved for loans and even jobs, along with all the other privileges that come with a positive credit rating. However, in order to maintain a good score, it's essential to have excellent money management and avoid reckless spending.
The most important factor in determining your credit score is your debt-to-income ratio - the amount of your monthly gross income versus how much you spend each month on things like housing and food expenses. The higher percentage of income that goes towards servicing debt (like student loans), the worse off you will be when it comes to scoring high marks on the major credit rating bureaus' reports.
If you're not sure that you have the money management skills to make all of the payments on time, credit counseling might be a more appropriate solution for you. With this kind of assistance, your individual finances are taken over by trained professionals who are dedicated to helping people establish good financial habits and get back on track with their spending. One advantage that consumers enjoy from working with a credit counselor is that their financial education is usually more thorough than what you can get on your own.
There are many organizations out there that offer individualized debt counseling at no cost to borrowers.
The most important factor in determining your credit score is your debt-to-income ratio - the amount of your monthly gross income versus how much you spend each month on things like housing and food expenses. The higher percentage of income that goes towards servicing debt (like student loans), the worse off you will be when it comes to scoring high marks on the major credit rating bureaus' reports.
If you're not sure that you have the money management skills to make all of the payments on time, credit counseling might be a more appropriate solution for you. With this kind of assistance, your individual finances are taken over by trained professionals who are dedicated to helping people establish good financial habits and get back on track with their spending. One advantage that consumers enjoy from working with a credit counselor is that their financial education is usually more thorough than what you can get on your own.
There are many organizations out there that offer individualized debt counseling at no cost to borrowers.
