Having a bad credit score comes with a lot of disadvantages. Besides a higher chance that you will get rejected for your loan application, you will most likely be offered loans and credits with a high-interest rate.
Too much debt may lead to bankruptcy and stick you with a bad credit score. To avoid this, only open lines of credit when you’re absolutely sure you can maintain the minimum payments that fit within your budget.
To maintain a good to excellent credit score, you must always remember to pay your monthly bills on time. Late payments and missing payments can put a black mark on your credit score since payment history is one of the factors that can significantly influence it.
Managing your finances is one of the essential things you must do to be financially secure and healthy. It can help you ensure that your income sustains your financial needs, and it can also help you manage your debts and credits, thereby securing a good credit standing.