You Can’t Have A Good Credit File If You Never Use It – Robert Eason’s Advice To Young Entrepreneurs
Credit cards are one of the most powerful tools in the financial world. While it allows you to purchase what you desire, it is also a representation of your financial stability. As the world is being filled with new scammers and frauds every day, it is becoming hard for banks, investors, and housing authorities to trust individuals. In such a crisis, credit points can be evident in someone’s financial integrity and reliability.
Those who understand the importance of these impactful credit scores can easily withstand difficult economic times. They can also acquire different kinds of credit, from student and personal loans to mortgages, through their higher ranking of credit allowing them to obtain at a low-interest rate. Robert Eason, through his credit score, was able to get approved for a loan for his startup business, GOSO Technologies, a solar installation company that’s making an impact on the world and is now helping others do the same. And that’s not all. He was able to obtain international investment after proving himself as an entrepreneur.
According to Robert, you can’t have a good credit file if you never use it. In fact, a bad credit score can cause some severe financial strains in numerous ways – from being declined for loans to paying heavy interest rates, which can further burden you with debt. A credit score is one of the essential measures to categorize someone one’s liability status. Your credit score can determine whether you are a high or low-risk borrower to your lender. However, a score above 700 is considered good by many. The better your credit score, the better interest rates, and terms lenders will offer you. Improving your credit score is all about being a good self-accountant. The more you focus on your financial statements, the more you will learn what kind of credit you should get for maximum credit points. It will eventually improve your credit score by a considerable margin.
If you are among those who just realized they have a bad credit score and wonder how to gain more points, then you are not alone. Every 2 out of 3 people in the USA is struggling with a bad credit score. If you are an aspiring young entrepreneur, Robert Eason has shared some crucial tips that can help you get a good credit file or get you back on track and improve your credit score.
Pay your bills on time
The importance of paying your credit card bills cannot be stressed enough. For those of you who wish to score above 700 on your credit score, paying your credit card bills on time is the way to go. It improves your credibility as a borrower, eventually improving your chances of getting loans or renting houses.
Track credit utilization rate
It must be understood that many factors affect credit scores. Credit utilization is another critical factor that affects how many points can be gained by a particular loan. It is advised to keep your credit utilization rate below 10%. The reason is that you will earn fewer points on a specific credit scoring category if the rate is higher, which will eventually impact your credit score. In fact, people who have the highest average FICO maintain their utilization rate at 7%.
Don’t rush into closing accounts
According to Robert, after paying off a student, car, or any other loan, don’t rush to wipe out all the traces of your account from your credit report. An account that was maintained timely without payment delays and paid in full is good. Closing such accounts can decrease your overall credit limit, ultimately lowering your credit score. It is advised that rather than closing such accounts, keep the card with a $0 balance, as it will also keep the utilization rate lower.
The credit card expert believes that you can’t have a good credit score if you never use it. And that is absolutely true. You should open at least four personal credit card accounts, get a mortgage and auto loan as soon as possible, and show a reasonable credit history and experience with different types of financing. A credit score is all about borrowing and paying back.
In conclusion, the above tips can help you gain a good credit score, but as mentioned earlier, many factors can affect your credit points. It is always beneficial to consult with an expert like Robert Eason, who understands the challenges one can face in gaining good scores. In his career, he has helped many young entrepreneurs to start their businesses by improving their credit reports. His aim is to help individuals gain financial freedom through credit scores, which distinguishes him from the rest!