answersLogoWhite

0

Using a credit card sensibly - is a good way to improve an individuals status. Making payments on time - proves you can be trusted to use a credit facility sensibly. Clearing any outstanding balance quickly, also improves your rating.

Conversely, 'light' usage of the card, late payments and 'topping up' your balance to its limit all count against you.

User Avatar

Wiki User

12y ago

What else can I help you with?

Related Questions

Do credit card companies report individuals' financial information to the IRS?

Yes, credit card companies do not typically report individuals' financial information to the IRS.


How does financial aid affect your credit score?

Im applying for financial aid for my house payment. will it effect my credit score


In what ways can a negative credit report affect your financial goals?

Refinancing can affect your credit report, and excessive shopping can also hurt it too.


How does credit affect an individual financial standing?

Your credit can raise or lower your credit score. It is what consumer credit for buying a house or car is based on.


What options are available for individuals with a zero credit score to establish credit and improve their financial standing?

Individuals with a zero credit score can establish credit and improve their financial standing by applying for a secured credit card, becoming an authorized user on someone else's credit card, or taking out a credit-builder loan. These options can help them build a positive credit history over time.


Which financial institutions offer full banking services to individuals and businesses?

credit unions


Why are credit investigations criticized?

Credit investigations are criticized because they are seen as invasive and intrusive into an individual's financial privacy. They can also be seen as discriminatory, as they disproportionately affect individuals with lower incomes or poor credit histories. Additionally, some argue that credit investigations do not provide a holistic view of an individual's financial stability or ability to repay a loan.


What factors affect your current financial position?

Overhead expenses, the economy, and poor credit.


What does this means Remember that credit is money?

"Remember that credit is money" means that credit represents a financial resource that can be used for purchases, investments, or expenses, similar to cash. It signifies that borrowing or using credit is essentially accessing funds that need to be repaid later, often with interest. Thus, managing credit responsibly is crucial, as it impacts financial health and can affect future borrowing capacity. Understanding this concept helps individuals recognize the value and potential risks associated with using credit.


How long does a bankrupsy affect me?

Bankruptcy can affect your credit for several years, typically remaining on your credit report for 7 to 10 years, depending on the type of bankruptcy filed. During this time, it may be more challenging to secure loans or credit, and if you do, you may face higher interest rates. However, many individuals begin to rebuild their credit within a few years after bankruptcy by practicing responsible financial habits. Ultimately, the impact of bankruptcy on your financial situation can diminish over time as you work to improve your creditworthiness.


What is the importance of credit in financial transactions?

Credit is important in financial transactions because it allows individuals and businesses to borrow money for purchases or investments. It helps build a person's financial reputation and can impact their ability to access loans, mortgages, and other financial opportunities. Good credit can lead to lower interest rates and better terms, while bad credit can limit financial options and increase costs.


How does diversification affect financial institions credit risk exposure?

Generally, diversification helps reduce the overall credit risk exposure for financial institutions by reducing their overall expected chargeoff rates.