When you go for a credit card, you are normally surrounded with several questions. “How much I should spend?”, “What if I exceed the limit” and many more. You may even start doubting yourself whether you really need a credit card or not. One of the things that most commonly goes through a person’s mind is credit score.
A healthy credit score is a guarantee that you can continue with your credit card. You can even apply for further credit when needed. However, it is not always easy to maintain a good credit score if you ‘listen to your heart’ rather than your brain. Debt collectors in Singapore and finance personnel are not really good with feelings so it won’t save you if you exceed the limit.
A credit score is a three digit number that tells your progress with your credit card. The value lies between 300 and 850, the higher it is, the better your credit score.
Summary of Credit Scores
To know exactly where you stand with a certain credit score, we have compiled for you a summary of how credit scores usually work.
If you score between 300 and 580, you are seriously low on your credit scores. You may not be granted further credit and even if granted, the interest rates are going to be too high. If you rank above this range and under 650, you will be granted credit but at high interest rates.
Scoring above between 650 and 710 will allow you to attain credit at moderate rates. The closer you get to the highest possible score, the lower interest rates become. Scoring anywhere above 751 will guarantee the lowest possible interest rates in the market so you may want to end up in this region.
Earning a Good Credit Score
Earning higher scores is not too difficult a job. However, it does require patience and you have to be careful while you spend. Here, we leave you with a couple of easy tips that will help you raise the credit score so that you enjoy the perks of keeping a credit card.
Stay within your limits
There are many credit management tips and here is one of them. Stay within the limits and things will be good. When dealing with credit cards, it is even more important that you check where you stand with your expenses during a month. If you exceed your credit limits, it goes negatively against you and your credit score will drop. However, if you spend less than 30% of your credit card limit, you will get a positive score for your credit card.
Make due Payments
Paying your dues at the right time is a healthy habit that will uplift your credit score quite a bit. If you are lazy and tend to forget things, it is better that you note down the payment due date of the credit card.