High credit helps lenders: Credit card fees should be paid off every month

Reporter : Yang Yang / https://www.ntdtv.com/gb/2021/03/25/a103081194.html / Direct translation

When buying a house with a loan, credit scores play a vital role. So how to quickly improve your credit score, let's take a look at the expert's analysis.

Senior industry insiders say that the best credit score is between 740 and 760. Generally speaking, for every 20 points difference in credit scores, there will be a difference in interest rates.

Xu Guangzu, a loan specialist with many years of loan business experience, pointed out that there are many factors that affect credit scores. If you only pay the minimum amount of repayment each month, you will not be able to increase your credit score or even reduce it.

Xu Guangzu, Vice President of Jiaxin Loan Company: "His credit card is not fully paid off, and he pays the minimum amount every month, and then he always owes him. Such people don't have a high credit score, usually around 660."

He suggested that if all credit card debts are paid off, usually in more than a month, the credit score can reach 700 points.

In addition, he pointed out that some people think that more credit cards can improve their credit scores, which is actually a misunderstanding. If the credit limit of each credit card does not exceed 35% of the credit card limit, you can quickly increase your credit score.

Xu Guangzu, Vice President of Jiaxin Loan Company: "In the United States, your credit card is used up every time. The bank is happy. It charges you more commissions, but the credit bureau thinks that this person is not enough for your money. The condition is not good, you have to swipe your card all the time, so it will affect your credit score."

If the user pays off the arrears before the monthly payment date, the credit score is still very low, and you may need to ask the credit card company for further inquiries.

Xu Guangzu advised, "You can ask your credit card company what is your settlement date. I will always pay it before the statement day, not before the payment day. Pay it off so your credit score will be high."

Xu Guangzu also mentioned that if in the past 12 months, the repayment of the housing loan has been delayed once, even if the credit score is above 800, the borrower will not be able to apply for the loan.

Xu Guangzu said, "The most taboo thing for banks is that if your housing loan is within 12 months from today, you have a late payment, no matter what your reasons, you will be in the middle of the year. Check your income, you can't get the loan."

In addition, he also reminded the public that at least one credit card must be used for more than one year when applying for a loan.