3 Tips To Protect Your Credit Score And Avoid Late Payments
Did you know that the fact that you missed just one payment can stay in your Central Credit Reference Bureau Information System (CCRIS) records for 12 months?
— Did you know that your payment history alone accounts for nearly half of what determines your credit score?
— Did you know that making late payments attracts extra fees and fines and damages your credit standing?
— Did you know that people who record making late payments are less likely to secure a loan than those who make timely payments?
All the above are only some of the reasons you have to do everything you can to make all your bill payments promptly. But with so many different things going on in your life all at once, it’s possible to forget you have costs to make at times, honestly. If you want to stop making payment delays due to such oversight, here are some tactics you can employ.
1. Activate The Auto-Debit Feature On Your Bank Account
The Auto-debit function works by deducting a set amount of the funds in your savings or current account and sending it to a designated entity at established times. With a tool like this, you’ll be able to conveniently make all the payments you need to without having to handle the transaction process yourself. What’s more, this is a service some banks offer for free or at meager costs. However, keep in mind that you need to ensure that you have enough funds left in your account to use this function properly.
2. Set Payment Reminders
Another approach you can use independently or use to complement the first method is to use any of your mobile devices or laptop tools to set a reminder to make payments. It is relatively simple and convenient to do as all these electronic devices have calendar functions that are easy enough to navigate. However, if you’re not too comfortable with digital devices and prefer something even more straightforward, a diary or desktop calendar will do fine. But you’ll need to make sure that you check these frequently enough, so you still don’t forget to make your payments.
3. Review Your Credit Score Frequently
Your CCRIS report will always carry all the information about your credit score health, including what bills you must pay and when. While you can rely on your updated MyCTOS Score report for this, the former will always be better as it’s far more comprehensive. With the information you constantly get from your CCRIS, you’ll be able to plan yourself accordingly and ensure that you have what you need to settle your pending bills at any point.
You can’t afford to make settling your bills an afterthought. Apart from all the consequences that come with not making these payments on time, there’s the fact that you’ll be making the process of your next loan application more difficult!
So, make sure you do all you can to pay your bills on time!