Ideal No Of Credit Cards / CIBIL Score | Credit Sudhaar

CREDIT SCORE INFO SERIES-4

IDEAL NUMBER OF CREDIT CARDS FOR GOOD CREDIT HEALTH

RESTORE,ENHANCE & PROTECTYOUR CREDIT HEALTH

CARDINAL RULE

• An important indicator of good credit health is a good credit score.

• Have at least three active revolving cards for good credit health.

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CREDIT SUDHAAR INFO SERIES

• Why three to five is a "sweet spot"? Here's some background on how the credit system works....

HOW CREDIT SYSTEM WORKS?

• You need credit to have a high credit score.

• If you don't have at least three active credit lines, the credit bureaus do not have enough information to analyze your spending or payment habits, so they can't accurately assign your risk level.

ANOTHER PERSPECTIVE

• From a bank's perspective, having no credit is actually as bad as having bad credit.

• If you don't have enough credit, the credit bureaus will not have enough information to judge you on.

• They think "better safe than sorry" and give you a low credit score.


• So remember : "no credit is as bad as bad credit.“

• This is an important thing to remember, particularly if you have been through a bankruptcy, foreclosure, or other financial meltdown.


• Wiping your hands off credit is never the right move. Your credit health will never improve unless you have credit, and use it responsibly.

• So what should you do if you less fewer than three credit cards? Remember if you don't have at least three credit cards your health is suffering....


• Sometimes people with just one or two credit cards may have a high score. If they miss one payment, or if an error crops into their report, their score will drop like a rock!

• If you have an established history of being responsible with three to five credit cards, your credit health will be a lot more sturdier than if you have one or two credit cards...


• What should you do if you have fewer than three credit cards?

• Add some! You have two choices....Add traditional credit cardsAdd secured credit cards


• There are two different types of credit cards: traditional and secured.


• Traditional credit cards are just plain, regular credit cards. A bank gives you a credit line, you borrow, and pay the bill at the end of the month.

• A secured card is secured by a deposit. You give the bank a deposit, and the bank gives you a credit card with a limit that is equal to (or in some cases, less than) the deposit.


• The deposit is applied only if you miss a payment, in which your score suffers. Basically you pay a deposit to get the card, then the bank holds the deposit and you pay the bill out of your pocket.

• Obviously, traditional characters are better than secured cards, but if you have a terrible credit history, you might not qualify for a traditional card.


• Secured credit cards require you to put up a little bit of money up front, but if you can't qualify credit, they are a great way to build credit.

• If you have bad credit, just apply for secured credit cards. Then, after six months of a low balance and timely payments, call and ask the credit card company to switch the secured card to a traditional card.

KEEP IN MIND

• Every time you apply for a credit your score might drop a little.

If this happens to you don't worry


• After 2-3 months your score will begin to climb.

• As long as you keep the balance low and pay the bill on time, your score should be higher than it was before you had the cards within six months...


• Now, lets discuss if you have more than five credit cards...

• If you have more than five credit cards, your credit health could suffer because the credit scoring bureaus will see that you have a lot of opportunity to over extend financially.


• You might be tempted to close credit card if you have more than five....

Resist this urge


• Most experts agrees that once you have opened an account, you should not close it as it will affect your credit health and most probably harm it.

• Part of your credit health is the average age of your credit card accounts.


• Your credit health is a reflection of how credit worthy you are and having an accurate and good score is perhaps one of the best things you can do to protect your cash your family, and your future.

HOW TO BE CREDIT HEALTHY?

• Use credit wisely

• Monitor you credit. It’s important

• Credit healthy= Long Term Planning. Plan in advance!

• Address credit issues on priority with professional help.

CREDIT SUDHAAR

Restore, Enhance and Protect you credit health with customized health packages from Credit Sudhaar.

Visit www.creditsudhaar.com ORCall 022 6179 7000 ORSMS CS to 56263456

Wish you a credit healthy life!

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Ideal No Of Credit Cards / CIBIL Score | Credit Sudhaar