Matt Carpenter’s Top 3 Tips to Maintaining a Strong Fico Identity Score

NEW YORK, NY / ACCESSWIRE / March 25, 2021 / Matt Carpenter is one of the top leading young professionals in the credit consulting and repair space. He has built a name for himself in this competitive industry due to his speed of turn around, high-quality work and efficiency, and superb client relationships.

Utilization Rate

The first tip says Carpenter, is to keep a 2-7% utilization for a minimum of 60 days.

While a 0% utilization is certainly better than having a high Credit Utilization Report, it’s just not as good as something in the single digits. Depending on what scoring model is used, some experts recommend aiming to keep your credit utilization rate at 10% (or below) as a healthy goal to get the best credit score. Carpenter recommends 2-7%, because, unlike 0%, anything below 10% shows lenders you are using the card in a smart way and not over leveraging yourself on unethical purchases. It also shows that you are willing to carry over a balance instead of paying it off completely, making the lender a little money as well, and therefore, they love you even more. It also shows on your FICO score that you are a trustworthy and dependable account holder which will only keep driving your score up even more.

Inquiries

Carpenter’s next tip is in regards to opening accounts. When applying for credit cards, be conscious of the fact that inquiring about credit reports could affect your score to a small extent. Most times a “soft” inquiry will have no effect on your score, but a “hard” inquiry could.

And lastly, but possibly most importantly, remember that late payments will be double the damage. One recent late payment can cause as much as a 180-point drop on a FICO score, depending on your credit history and the severity of the late payment. Also, according to the Fair Credit Reporting Act, late payments can remain on your credit reports for up to seven years from the date of the delinquency. It is nice to note that any payment that is less than 30 days late will not be noted on your credit report. However, a credit card issuer does have the right to raise your rate if you pay after the date your payment is due.

If you do make a late payment, there are three factors that determine how much it will affect your credit score. The first, is your credit score and credit history. If your credit is already in bad standing or you have a history of late payments, this is going to affect your credit score more with each late payment. The second, is how long ago the payment was due. The longer a payment is past due, the more damage it is going to do to your overall credit score, so rather than thinking it is too late to fix and letting it sit longer, the best thing you can do is stay on top of it and pay what you can towards the debt.

Late Payments

The third is how severe the late payment was, (the more money you owe, the more severe the damage is.) Even though a late payment might have originally dropped your score by a good number, the impact of that late payment changes over time. So, it can be helpful to remove late payments that are several years old, because any negative items in your credit will weigh down your scores.

Your payment history is by far the biggest factor in determining your credit score, so it is imperative that you pay your bills on time whenever possible. Late payments stay on your report for seven years. In order to improve a damaged credit score, pay off your remaining and new credit card balances. This will reduce your credit utilization ratio, which will do wonders for your score.

For more information, tips & tricks, or to contact Matt regarding help with your credit score, head over to Instagram and follow him at @thematthewcarpenter and @peakcreditcourse.

Contact Information:

https://www.instagram.com/thematthewcarpenter/
https://www.instagram.com/peakcreditcourse/
MountainPeakLifestyle@gmail.com

SOURCE: Peak Credit Course

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