If you want a top notch credit score, you are going to have to start thinking about a lot of things with your personal tradelines probably topping the list of important avenues that you need to start looking into. One tip that a lot of people talk about is regarding how minimum payments are really not useful for you if you are legitimately to improve your credit score and bring it to a point where it would facilitate the acquisition of top notch loans that will help you improve your life as much as possible.

We are going to dive into the reason behind why minimum payments are a bad idea. The first reason doesn’t exactly have to do with your tradelines and credit rating, but it’s an important reason regardless. This reason is that if you make the minimum payments required by your loan provider, you are basically trapping yourself in an endless cycle of debt. Minimum payments are designed to make your debt grow constantly, they are not meant to make it possible for you to clear your debt within any short period of time whatsoever.

The second reason does indeed have to do with credit ratings, and this reason is that if you make minimum payments for too long this is going to end up making it possible for regulatory authorities to lower your credit rating on the basis of you not providing your loan providers with timely repayment of your loan. Basically, if you stay in debt for too long you will end up being seen as a liability for creditors and loan providers and this will eventually make your credit rating a great deal lower than it would have been otherwise.

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