Managing Your Credit Score Effectively

It is important that you know your credit score especially if you are planning to buy a house or car in the near future. Before anything else, it is crucial that you know how to define credit score and credit report. Some Singaporeans are confused. Credit report is totally different because it contains all pertinent information about the person’s credit file which is maintained by the Bureau.

The data on your credit report is computed and interpreted which can determine your credit score. Credit score is a single number and it usually ranges from 300 which is terrible to 850 which is perfect. Knowing your credit score is vital since it can change anytime and it can affect your life in general. With that, you have to check your credit score all the time and learn how to manage it effectively. Here are some tips that you can consider:

• Set dates for acquiring your credit reports: It is imperative that you set dates for getting your credit reports annually. You can avail of the services of agencies to help you with your credit report.
• Get credit score at least once a year: You know the importance of getting and knowing your credit score so with that, you have to retrieve your score at least once a year.
• Limit the use of credit cards: If you paid all your debts, you will consider cancelling one or two of your credit cards. That is not recommendable since your credit score is relying on your credit lines that are open and in good standing. The least that you can do is limit the use of your cards not cancel them.

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• Pay on time: If you want to have good records, you need to pay on time. If you are late, it can surely damage your credit standing. You have to prioritize paying big loans like car payments and your mortgages.
• Monitor your credit problems: If you filed for bankruptcy, you have to monitor your credit problems so it will not affect your record. You have to follow-up every now and then to make sure that the removal of your debt in your record is removed.  
• Track your credit card spending: You have to track your credit card spending so you can plan your payment accordingly. You can write it in a simple paper or you can use a program.

Hopefully the things mentioned above are clear to you. If you fully understand credit score and how to manage it, your dream house or car is in your grasp. Good luck!