There is no worse feeling than having a bank or apartment manager ask to see your credit score when you know that it is less than stellar even when you haven’t really done anything wrong. Here are some ways that can boost that score quickly.
First—You need to budget and know what your income is verses your monthly payments. If you don’t know you are just playing a guessing game and your credit score will directly reflect that.
Second—Make sure you budget some of your money for your long term debts for ex. Cars, college loans, and anything else that may be loaming over head. If you can’t pay them off now then at least keep up with the payments.
Third—know that you don’t have to use credit card interest to build your credit. They are an unnecessary expense and will only suck from your account.
Fourth— Stay away from bankruptcy and foreclosures. These will hang around and haunt you whenever you check your credit scores.
Fifth— Keep up-to-date on what your score is. You can’t fix things if you don’t know what is going on and you can get a free annual report from the government so there are no excuses.
Sixth—Use automatic payments in order to keep up on loans and other payments. This is an amazing feature online that can really improve your game plan.
Seventh—Don’t fight your insurance company too much. By letting disputes get too heated many people find a dent in their credit score even though they may have been right.
Eighth—Pay off revolving debts before you pay off installment debts. This is what a lot of your credit report is based off and it is also better to spread the debt out on several cards if you have to.
Ninth—Stay low on your credit utilization so you are well under the limit. This looks good when credit agency see you consistently only using a portion of your credit each month.
Tenth—Don’t close accounts because this can actually hurt your score in the end.
As you start implementing these tips you’ll begin to reap the benefits of an improved credit score. Some people aren’t aware of the many benefits to having a great credit score so here are some of the top benefits and perks that we find from improved credit:
One of the major one is having the ability to pull out loans for cars or a house. Credit is basically trust and allows banks to work with you much more readily.
Another perk is being able to lower your interest on loans. You don’t want just any loans when you apply. You want to be able to get the best interest out there.
Good credit also means good mortgage rates. Sometimes this can save good credit scorers up to 300$ a month on their house payments.
People don’t think about it that much but good credit can get you a much better cell phone plan as well. More and more cell phone companies are incentivizing good credit and are taking the time to check for stellar scores.
Discounted insurance is another major incentive for good credit and many times insurance companies offer other incentives and give customers who have good credit better options.
Working with landlords and apartment managers requires good credit in order to be in good standing. Sometimes it helps in the negotiation process and can lower your monthly rent.
If you are thinking of starting a small business good credit can not only help with loans but can help you qualify for good real estate which is very important for business owners.
Another little known effect that good credit can have is on your future employment. Many employers do a credit check to see how consistent applicants are.
This can be used in order to help employers make decisions on two similar candidates.
So with all of the simple ways of maintaining and raising your credit score, you should come up with a budgeting plan for implementing them. Getting a good credit score may not be an overnight event but if a person is diligent he/she can slowly decrease their debt and keep up on payments and ultimately increase their credit score.
The benefits definitely outweigh the costs as each point refers to less debt and more freedom to choose.