Having a good credit score is neither easy nor it is achieved from one day to the other. There are no shortcuts or magic solutions possible that abound in advertisements flooding your mailbox and email as well. But it is not impossible. It takes time and organization to have a good credit score. Conveniently you must advise with professionals and your family will need to also be properly involved. It is an issue that concerns all credit types and keeping clean with a good score. And above all understand that you cannot live above your means. It is important to understand that you should not fall into the temptation to use your credit if you cannot meet your obligations in a timely manner. For some things, we have to wait a little while. Everything will depend on good planning and perseverance.
The key to a good credit score is perseverance and will. If you act correctly and honestly, after some time will do it successfully and in that way you can achieve yours and your family’s dreams.
Remember that you will not have ensured the success if you are not careful and do not maintain what has been achieved. This is the second key that is essential when you have a good credit score, perseverance on the path taken. Not from the way of shortcuts or falling into temptations, spending more than you should. You must constantly stay on schedule while unforeseen emergencies should also be taken into account in your planning which can be flexible without risk. Everything is a matter of adequate time forecasting and the results of your financial decisions.
- You are supposed to start building your credit history as soon as possible, the more extensive in time, the better it is.
- If you do not get credit because you do not have any, you begin with a covered card also known as secured or prepaid credit cards. You deposit what you spend. Check with your bank that handles such deals.
- Pay your bills on time, all the times, maybe one day prior to maturity.
- When you go on vacation, schedule your payments for expiration dates. The story you were on vacation will not help at all with your creditor if you have not fulfilled it in the form and time.
- If you change direction frequently, get a PO Box and ask them to send the bills.
- If possible, pay online from your bank account. You save the stamp and the possibility that the letter was lost. A single payment made 30 days later could get off 100 points. This is the ideal method when you go on vacation, since you can make payments from anywhere.
- If you are well organized with your bank account, some creditors are authorized to charge by debit card. Let them know when you change bank in advance.
- If your bill has the last date until Saturday or Sunday, Monday is overdue. Therefore, in such cases, you must pay on Friday.
- You must have an appropriate mix of revolving credit such as credit cards, mortgage loans and fixed charges.
- If you have the opportunity to completely cancel an obligation, do it. This will improve your score.
- Making too many requests to credit reporting agencies by several companies in a short time will lower the score, so avoid it.
- You must be particularly careful when you buy a car, because each dealer will want to see your credit report.
- Legal fees, tax debts and bankruptcies are among the blackest stars of your credit history and make you lose your score. Be careful that none of this appears on your credit history.
Remember that a periodic monitoring of your credit history is essential. To avoid unpleasant surprises, especially related to financial fraud, it is of greater importance to permanently monitor the credit report.
Many entrepreneurs start to get credit through personal loans. To access the best conditions, you need to improve your credit score. The credit rating is like trust which takes time to build, but can easily be destroyed. Unless there are errors, you cannot change the past actions that caused the low rating of your current credit. However, you can improve credit score. Follow these basic tips to establish a line of credit that allows you to access the funds needed to invest in the growth of your future.
1 – Pay on Time
The most important rule for maintaining good credit score is to pay your bills and debts on time. The ideal thing is to make payments on or before the due dates and gradually reduce the amount you owe to improve your credit and comply with the minimum payments on time. If you follow this advice, within a few months, you will have a better credit report.
2 – Use Your Credit in Moderation
Many systems evaluate the amount of your outstanding debt compared to your credit limit. It is important that more than one third of your income you spend paying debts, including mortgages, credit cards, and consumer credit. Try to use credit cards only for purchases that have long-term value such as furniture, medical care, or emergency repairs and avoid using credit cards for everyday expenses. Do not use the limit on your credit cards, but use only between 30% and 50% of revolving credit available.
3 – How long have you had credit?
Overall scoring models consider how long you have credit. If your credit history is insufficient, your score may be negatively affected, but this can be counteracted if you show that you do your payments on time and keep debt amount low.
4 – Check Your Credit Once a Year to Correct Errors
If you think your credit report contains erroneous data, you must provide written notice to the concerned agency that will follow up on your request notifying the creditor. If the creditor gives the reason, improperly seated data on your credit report will be modified. Remember that your credit is a reflection of the information found in your credit report. If the report contains negative data, it will impact your credit regardless of whether the information is accurate or not. Therefore, you should review reports from the three credit bureaus i.e. Equifax, Experian and TransUnion to see if they are accurate, at least once a year, and especially several months before applying for a loan.