Journeys become more manageable when you know the path at the onset. Even if you have a clear goal of improving your credit, most people do not know the path to get there. At Sherpa Credit we specialize in finding the best path for your unique history and situation and guiding you through it. A great first step on this journey is to avoid taking on excess credit.
If you have many lines of credit or several huge debts, you are a worse credit risk because you are close to “overextending your credit.” This simply means that you may be taking on more credit than you can comfortably pay off. Even if you are making payments regularly on existing bills, lenders know that you will have a harder time paying off your bills if your debt load grows too much.
Higher debts mean greater monthly debt payments and risk for lenders. Plus, statistical studies have shown that those with high debt loads have the hardest time financially when faced with a crisis such as a divorce, unemployment, or sudden illness.
To have a great credit score, avoid taking out excessive credit. You should stick to one or two credit cards and one or two other major debts (car loan, mortgage, etc.) to have the best credit rating. Do not apply for every new credit line or credit card “just in case.” Borrow only when you need and make sure to make payments on your debts on time.
You should also know that taking out lots of new credit accounts in a relatively short period of time will cause your credit score to nosedive because it will look as though you are being financially irresponsible.
With Sherpa Credit as your guide, the journey to better credit becomes a manageable and empowering experience. Contact us and see how we can help.