Need to Improve Your Credit Now?
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3 Habits to a Healthy Credit Score A healthy credit score will save you money whenever you purchase anything on credit. The better your score the less you have to pay in interest so maintaining a high credit score pays for the time and effort you put into developing good money habits. Here are three money habits you can develop which have a positive effect on you credit score.
1. Pay your bills on time. The largest factor of your credit score is your credit history at 35% of your total score so if you want to maintain a high credit score it is important to meet your obligations on time. The longer and cleaner your credit history is the better. Therefore developing the habit of always paying your bills on time has a great effect on your score. In order to do this try the following suggestions: · Maintain a month’s income balance in your checking account. · Pay your bills on the same day every month · Arrange auto pays the day after you receive your paycheck
2. Build a good Relationship with your Bank If you have a Good Relationship with your bank when it comes time to apply for a loan they already have a favorable opinion of you and your money habits. Bank loan officers have some leeway when it comes to who they take risks on and who they don't. Your credit history is the biggest factor but a positive relationship with your loan officer will help tremendously. To build a good relationship with your bank you can: · Maintain a growing savings account · Apply for small personal loans and pay them off on or before time · Do as much business with one bank for as long as possible
3. Maintain a Low Debt to Credit Ratio This means that you have a large amount of available credit available to you and you use it responsibly. When your Debt to Credit Ratio goes down over a period of time it tells potential creditors that you: · Don't use new debt to pay old debt · Are more likely to consistently pay your debt in full · Have the ability to earn enough to service your debt The most important thing to remember about your credit score is that it is a representation of your financial habits. So if your credit score is low then concentrate on improving your money habits and your score will automatically rise.
Lastly as a bonus: Review your Credit Report Yearly You can get a copy of all three credit reports for free once per year so take advantage of this and ask for it. Once you receive your report review it carefully for errors as it is estimated that over 50% of credit reports contain errors which adversely effect credit scores. Watch for reoccurring problems and make changes in your habits to prevent them from continuing. Once you get a handle on your financial habits you won't have any problems with obtaining credit when you need it. If you need fast credit score improvement try using a professional service like Lexington Law |
