Building Your Credit Score Is Not THAT Hard – You Might Already Be Improving Your Rating Unknowingly!
You may have not heard of the term credit score until you needed to borrow money for something pricey you’ve been dreaming about. It is a rating that measures how likely you are going to repay the money you owe a lender and which is between 300 to 850. The higher, the better and it should be stressed enough that you need to strive to have a good score because financiers will always consider this a factor in lending you funds.
There are a lot of perks that come with a high credit rating: your loan application has a better chance of being approved, you are qualified to have a low-interest rate, you may get a cell phone plan without a need for a security deposit, and you’ll have a higher credit limit.
On the other end of the spectrum, having a low score can be frustrating if you really need the money and it can sometimes feel the situation is hopeless. Thankfully, you can rebuild your grade in time. However, for some, there are things they unconsciously do that end up improving their scores.
Keeping a Low Balance
Your bank will look at how you utilize your credit allowance. Maxing out your card and paying the minimum is not a good combination and will likely be the reason why you have a bad credit rating. You should have a healthy equilibrium between what you spend and the credit available. If you pay your balance on time, you will see an improvement in your score.
Having an Old Account
Little did you know that your old yet open account is a factor in the computation of your credit score. In fact, it makes a lot of difference if you have a long-running account that had not any big mishaps because it will send off a vibe to lenders and issuers that you are likely to follow the same behavior now.
However, if you have not been so keen on keeping your line on track for a high grade, just the fact that they remain open already increases the age of your account, which is an important part of attaining a good score.
If you have a secured card, ask your issuer if you could change it to a better one without having to open a new credit line. To keep your account open, you need to utilize it for at least a single purchase per year.
Having Many Accounts
It sounds wrong but having many accounts lowers your average utilization because you are basically dividing your purchases into your cards. Plus, if you’re using multiple cards, you are showing consistency and responsibility to lenders, who will find it attractive that you can sustain these at the same time.
Opting for a Car Loan
You may want to choose to secure a loan in purchasing a car even though you can buy one in cash. Yes, it does come with interest rate but credit unions usually give out good deals to those trying to build their credit because this type of loan is considered low risk — once you don’t pay your dues, your car gets taken away from you.
More in Pocket Change
How to Bolster Sales and Build a Brand Image Through Social Media
As the world is rapidly digitalizing, it is essential to take a step up if you want to stay in business....December 11, 2020
3 Sure-Fire Tips to Find the Perfect Candidate for Your Company
Are you one of those HR people who get excited every time the recruitment and hiring season rolls around- or do...December 11, 2020
Latest to Jump The Property Buying Bandwagon – Alexander Wang
It looks like property selling isn’t the only trend gripping the celeb world. The rich and famous are buying new homes...December 10, 2020
Don’t Knock It Till You Try It- Promoting Your Business Offline
We get it- the world is completely digitalized now, and everything can be done with the help of a gadget and...December 9, 2020
Experts Reveal Secrets to Paying Off Mortgages Faster
Buying your dream house isn’t easy. There are several hurdles to tackle, like taking mortgages, making down payments, handing the paperwork,...December 6, 2020
Interning from Home? Overcome the Challenges with These Tips
In early March, Kendall Camp had to pack and move to his home in Tracy from Atlanta to complete his semester...December 3, 2020
Guide to Remote Learning for Job Seekers Looking to Work from Home
Due to the pandemic, most companies are offering remote jobs. In previous years, remote jobs weren’t exactly trendy, so most people were...December 3, 2020
4 Tips That Will Guide You In Refinancing Your Mortgage Loan
Who doesn’t want his own little place! Frankly speaking, every second person on earth dreams of owning a house. When making financial...December 3, 2020
Work Addiction Can Take its Toll on Your Career- Here’s How
Living in the 21st Century, it is inevitable for one to have fast-paced lives, including striving for the best and putting...December 2, 2020