When it comes to your financial health, we all know that it’s not just about cash flow, it’s also about our ability to access the cash that we need in the future, as well. In most cases, this means relying on your credit for mortgages, loans, and so on. However, your credit score and history can even come up when talking about things like trying to rent a house or find a job. For that reason, it’s worth following these tips to make sure you’re giving that credit score all the help it could use.
Make sure you pay your bills on time
Your credit score is, effectively, a numeric representation of how reliable you are in credit agreements. This means not only your credit cards and loans but also things like regular bills. Fail to pay them on time on a regular basis and it can start to tank your credit rating. As such, be money smart, be sure to put aside what you need for your bills in advance, and consider having them paid out of your bank automatically if you have trouble remembering to do it.
Use and pay off credit
If you don’t have much of a credit history, you might find it hard to apply for some of the best credit cards and loans around. However, there are introductory offers for those who have a bad or low credit to get their foot in the door. Low-credit credit cards are a thing, as are Money 4 You Payday Loans. You have to ensure that you only take on loans or credit that you can reliably pay off, but it can help you start building the history that allows you to apply for things like house loans in the future.
Take a look at your credit report
You can request your credit report (also known as your credit history) from one of the three big credit companies at Annual Credit Report. In fact, Equifax, Experian, and TransUnion each have to provide your report at least once a year at your request. Here, you can look at your credit history to see if there are any mistakes or instances of potential identity theft that could see your credit score suffering through no fault of your own.
Don’t close unused credit cards or overdrafts
If you have a credit card or overdraft you’re not using, you might be tempted to close it but that could be a mistake. Your credit utilization is also factored into your score. I.e., the more you utilize your credit, such as how deep you are into your overdraft or your credit limit, the more it will negatively impact your credit score. On the other hand, having a low credit utilization score can be good for your overall credit.
Even if your credit score is low or you have no credit history to speak of, it’s important to know that it can recover completely. It just takes time and smart use of your credit in the future.
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