Staying on top of your credit card bills is a key part of building and maintaining strong credit.  Here are a few things you need to know:

 

Credit Utilization
 
You’ve probably heard at some point that you should keep your credit card utilization under 30 percent. 
 
What does this mean exactly? 
Credit Utilization is the total amount of credit you’re currently using divided by the total amount of credit you have available and is one of the most important factors in determining your credit score.
Managing your credit utilization rate can be a simple way to help improve and maintain your credit. Focus on both parts of the equation – your balance and your credit limit.

 

Payment History
 
Payment history is an important component of your credit score and one of the most damaging habits you can have is failing to pay your bills on time.
Understandably, life can get busy and it can be challenging to keep up with your payment due dates. So how can you make sure you don’t miss a payment?
  • Consider a mobile app to manage your credit card and bank accounts you’re your smart phone.  You can track and pay bills with Dudatez – Just set it up and the app goes to work for you.
  • Alternatively, set up text or email alerts to be notified when your payment due date is coming up.
  • If you have multiple credit cards, consider requesting the same payment date for all your accounts.
Consider The Credit Score Affect
 
Paying off money you owe is always a good idea, as is knowing what kind of debt your dealing with and prioritizing what will give you the biggest boost. Money you borrow for a home or student loan is considered ‘good debt’ because it can help boost your financial position.  
The ‘other’ debt is usually in the form of credit card debt or a personal bank loans. You should always tackle these debts first. It will lower your utilization ratio, having a positive impact on your credit score and make you more attractive financially.
Have questions about your debt or credit score?  Reach out to our team of experts at asktheexpert@thdcreditconsulting.com.
 
– Erik Kaplan
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