Having and maintaining a good credit score carries many benefits
Including…..
- Lower interest rate on your credit cards and loans.
- Saving money on insurance and security deposits.
One of the key things you can do when it comes to your credit is to educate yourself about credit scores and credit reports.
Know what goes into your credit report…….
Your payment history, level of debt, credit age, a mix of credit, and recent credit are five key pieces of information used to calculate your credit score.
And take the necessary steps to build and maintain a good credit.
If you are new to using credit or are re-establishing a damaged credit, utilize these TIPS to keep your good credit on track.
Set up automatic Payments
- Setting up online payments for your bills is an easy, secure and convenient way to simplify your finances.
- Automatic payments will make sure your bills are paid on time and will prevent you from incurring any future late fees.
Be wise about Credit Cards
- Charge small amounts regularly on each card, but not more than you can pay off each month.
- Be cautious with credit card solicitations. Just because you receive one of these offers does not mean that you can afford the additional credit.
- Many companies are soliciting consumers who, based on their past spending histories, will charge big balances at high interest rates.
Use your lines of credit wisely.
- Do not open unnecessary credit accounts. The extra 10% that you save to open a department store credit account may be quickly offset by the possible decrease in your credit score because (1) you may spend more, and (2) you are adding an additional trade account and additional inquiry to your credit file.
- Also, before you apply for additional credit, make sure your rent, mortgage, and car payments can be easily met. If not, do not apply for additional credit until your income and debt are under control.
Manage your trade Lines.
- Do not close credit accounts unless it is absolutely necessary in order to close a loan. When you delete a trade line you also delete the corresponding credit history and may inadvertently lower your credit score.
- It is always better to pay off credit cards before an auto or mortgage loan to get the biggest score increases.
Finally, review your credit file at least twice a year and correct any errors and omissions.
Just because you do everything right with your credit doesn’t mean everyone else will. Errors could end up on your credit report leading to a drop in your credit score.
The more you know about what goes into your credit score, the easier it will be to maintain a good one.
A well-run personal finance doesn’t happen overnight.
So….. start today!!!!
I look forward to hearing from you!!
If you found value, please feel free to share!!!
Until next time…..
Althea
PS. I’ve partnered with a leading financial service company and the number one thing they do is credit restoration. We’ve helped many people since I started on this journey and always looking to serve more. Check out this short video in the bright YELLOW box…… to LEARN more.
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