Your score is separate from your report. It is a number that lenders use to calculate risk, and it’s based on what is on your report. That means if your report is accurate, good or bad, your score will be accurate as well.
. Map out when your payments are due and how much you’re required to pay. Then set up either automatic payments through your online banking or prominently mark due dates and amounts on a calendar.Article content An often-overlooked obligation is our cellphone bill, which is a unique form of credit. If you have a contract, you have agreed to pay the full amount each month. There is no limit, so as soon as you don’t pay everything you owe, you are deemed to be over the limit. Going over an approved credit limit on any type of credit account is hard on a credit score, which makes cellphone bills an easy way to build a credit rating and one of the fastest ways to wreck one.
When I explain credit utilization ratios to consumers, I often get either a confused look or they question why that is. The reason is simple: if you charge your cards to the limit and then face a problem with making your payments, you will struggle to keep up.