Good Credit is very important.
Having good credit affects almost every major buying decision.
Tips On Getting Good Credit
If your credit score is on the lower side, you may be noticing some financial hiccups. Your credit card APR may have gone up or you may be finding it difficult to get a loan.
Whatever it is, it is in your best interests to try and raise your credit score as soon as possible. But the problem is that, raising your credit score is not easy and it certainly does not happen fast.
It is important to understand that being slow and steady is very important if you want to do this the right way.
With the right credit behavior, you will notice an increase in your credit points before long.
Pay attention to your credit card balances
If you have one or more credit cards, it is necessary to pay attention to the balances you have on each of them.
Your revolving credit or how much credit you are using is an important determinant factor of your credit score.
Keep it as low as possible.
Your debt-to-credit ratio should not be more than 30%. In fact, it will be better if it is lower.
Even if you pay off all your credit bills at the end of every month, the credit you are utilizing may be high, which leads to a lower credit score. Try and keep this percentage as low as you can.
Pay off all small debts
A lot of people make the mistake of charging small amounts to their credit cards and then leaving them unpaid. This adds up every month.
This is more likely to happen if you have multiple credit cards. The amounts are not big and this habit can wreak your credit score. This is because credit bureaus check
how many of your credit cards have unpaid amounts in them and if yours is many in number, it cannot be good news. So take all of your credit cards and make sure that all the small amounts are paid off.
Let your good debt history show
Some people are under the misconception that old debt is not a good thing. If you took a loan for a car or a house and have repaid it well, then don’t try to get it off your credit history. It is a good thing that you have repaid your debts in time and it should be showing in your reports for as long as possible. It means that you have a good credit history.
Pay your bills on time
This is such a simple thing but so many people trying to raise their credit score don’t do this. Paying all your bills on time is a wonderful thing and it is going to have a
positive effect on your credit score. Even if you are saving money to buy something big, don’t neglect paying off your debts on time every month. This is going to reflect on your credit score.
Good credit behavior certainly pays over time. Be regular with your payments and your credit score is going to be raised automatically.