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Paying Monthly Dues But Still Have Low Scores? Here Are Things to Do

By Ruth Racey
Published: Tuesday, March 23rd, 2010

Supposed to be, when you are paying your monthly dues in full, you must have a higher credit score. This is because of the fact that one of the main determinants of your credit score is actually your payment history. 

When you think of your payment history, it is actually the way you have paid all your bills in the past. In this case, at first glance, being able to pay your monthly dues in full may mean a better payment history for you. And a better payment history must more likely lead to a better credit score. However, the fact is, this is not always the case. There are instances that you may be faithfully paying for your monthly dues in full, but still have no significant gains regarding your credit score. 

There are a number of reasons why you may not have an improvement on your score even though you are paying you’re your monthly dues in full. One of these is when you have racked up your bills beyond 30% of your credit limit. In this case, remember that you can pay for your bills at the end of the month, and have a better credit score, when you bills are still fewer than 30%of your credit limit. However, when you have bills beyond 30% of your limit, surely, your scores will be hurt. 

The second reason here is overspending. Whenever you have racked up your bills beyond your credit limit, your score will surely be dragged down even though you have paid it in full. Here then are the things that you can do when you want not your credit score to be hurt: 

  • Have a company card
    There are instances that you may be forced to spend your money for company matters, and will be reimbursed later. However, the fact is, even though it may be reimbursed by your company, it may still hurt your score when your bills go beyond 30% of your credit limit. In this case, in order for you to protect your score, it is best for you to get a separate company credit card.
  • Have your credit limit increased
    In this case, whenever it is necessary that you have to pay for things a lot, then it is wise for you to increase your credit limit, as long as you are aware that you can be able to pay for all of your bills and your dues. Increasing your credit limit may help you keep your expenses below 30% of your credit limit, making you have better scores by paying your monthly dues in full.

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