Page 16 - Everything You Need To Know About Personal and Business Credit by Adrean Yancy

Everything You Need To Know About Personal & Business Credit

· Keep High Credit · Late Payment
For both FICO and VantageScore, this is If you are going to use either of the two
the same: keep your credit high as much models, note that late payment has
as possible. And the best way to put this severe consequences. With FICO, the
into practice is: scale of the judgment for late payment is
the same across the board. However,
Pay as early as possible: That is, VantageScore penalizes late mortgage
you want to avoid paying late. It's payments.
even better to pay earlier than the
stipulated time.
Low credit balance: Ensure your Late payment on credit cards has the
accumulated balance is always less same consequence and impact with FICO
than 30% and, even better, lower and VantageScore, but on a mortgage,
than that. This has been explained you will be penalized more with
under credit overutilization. VantageScore than FICO.

Request for credit cards only
when necessary: As explained
above, applying for multiple credit
cards within a short period doesn't
make your account look good.

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