A credit score is a number that defines you financially. Although not always easy to control, you must keep it as high as possible. Unfortunately, it’s not enough to push the number to the side of your brain and hope for the best!
Your credit score affects your ability to get a lot of things, including:
- Credit cards
- Renting a flat/house
- A mortgage
- A start-up
- A cellphone
Due to this, it really is something you should work on. While this can be daunting, especially if you’ve brought your credit score down over the years, there are ways you can keep control of it and make the number a little more appealing. Here are ways you can keep control of your credit score.
OK, this one is for those who are young enough to not yet have either a brilliant or a tainted credit score. If you are only just starting, you should keep your credit score in mind from the very beginning. It may not seem like a big deal now, but if you think about it early, it’ll be easier to stay on top of it for your future.
Get More Than One Credit Card
If you truly want to improve your score, then obtaining several credit cards is a good option – just make sure you don’t overspend! Make sure you keep your balances low, pay back as often as you can, and pick a good credit card plan. A credit union credit card offers a years-worth of 0% APR and no annual fee, so it’s a great option if you want an extra credit card to help you on your way to a high credit score.
Always Pay Bills on Time
This one may seem obvious, but when times are tough, it can be easy to overlook. By always prioritizing your bills, you ensure that you don’t fall behind on payments, and if you do, find ways to catch up quickly. The more bill payments are made on time, the higher your score will be, so it is in your best interest!
Don’t Ignore Calls and Letters
If you have failed to make a payment, it might be tempting to hide them away and forget about them. You mustn’t do this! While eventually, after a lot of stress, the debt might go away, it will stay on your credit record for a long time. This will massively impact your ability to apply for loans, so it’s something you must avoid at all costs. Usually, companies are happy to talk to you about payment plans that suit you. If you feel like you’re drowning in debt, it’s always better to talk to someone for both your credit score and your peace of mind.
Increase Credit Limits
If you are stable enough, increasing your credit limits will increase your credit score. This one isn’t for those who risk overspending, however! Always make sure what you are owing goes down, and your credit score will rise.