Tips to improve creditworthiness

Columbus, Ohio – March is month to raise awareness of credit training.

Many central -ohioans fight with debts as inflation and the cost of living continues to increase.

According to the Federal Reserve Bank of New York, the total debt of households increased by $ 93 billion to $ 18 trillion. The FED reported that credit card credit rose by $ 45 billion and reached 1.21 trillion dollars by the end of December.

10TV spoke to Rob Brunette with the Outlook Financial Center about ways to maintain or improve your creditworthiness.

10TV reporter Bryn Caswell: “For those who may not know what is a good credit compared to bad loan?”

brunette: “Most people consider good credits as their creditworthiness. A good score is probably 740 or higher. Then they come to the better offers. But the idea behind Good Credit is also to see how they have reached this score. If you pay your bills on time, the creditors really like that. If you have a long credit story, you like that too. One of the things I see that people lose points in their loan score is that they have too much debt for credit cards and things of this kind. “

Caswell: “If someone suffers from low loan scores, what can they do to improve it?”

brunette: “Well, the first thing you want to do is to look at the loan offices and check whether the loan office has reported everything correctly. If there are any errors in the report, you might want to contest it. I would encourage it. All loan offices have this process only to assure you that you do not report with a creditworthiness, but everything is shown to you.

Caswell: “What else should people do to keep their recognition well? I have heard that a bit of debt is actually healthy and advantageous for their creditworthiness.”

brunette: “That's right. If you only use part of your loan, let's say you have 50,000 US dollars for different credit cards and things of this kind. If you use less than 5,000 US dollars of these 50,000 US dollars, it is under 10%. This is rated very.

Caswell: “Many people don't like to talk about money. It's a very sensitive topic, but why is it so important to have these open discussions about credit and general financial competence?”

brunette: “You have to understand how the system works and not that you can play the system, but understand how it works. There are so many people in various companies that have started with loan scores. Insurance companies have started using them. Obviously the credit card companies, but if you try to get a mortgage loan, you will look at your creditworthiness. All of them examine what their ability to repay is. You see that. And the longer your credit story shows that the person has paid all your bills on time. This plays very, very well in both their score and in the eyes of the loan offices. “