The start of a new decade opens a lot of pretty new resolutions and goals. A lot of people are in it for the promise of improving themselves, their lifestyle and habits. It is a great time to evaluate all aspects of your life while reflecting on the events that transpired in the past year.
This new year is an opportunity for you to build a good credit score. This will earn you a lot of access to more loans and options for credit cards which can give you favorable rates and terms.
Improving your credit score now will definitely earn you perks that you can utilize for special and emergency cases. Here are some ways how:
Always Pay On Time
The bank will always look into your payment history and determine if you have good behavior or not. Making late payments is one of the reasons why your credit score can drop rapidly that even just one late payment is enough to red flag your whole payment history. It is important that you settle this as soon as possible without further delays. If ever it is impossible to make it on time, contact your bank and ask for an extension. Banks are usually cooperative if you have been steadily committed to paying your dues. You just have to communicate it with them and be transparent about your situation.
Pay Your Complete Due As Much As Possible
It is okay to pay just the minimum payment due but it would not earn you a good standing. As much as possible, pay the complete due for the month. This is so much easier to sustain because the remaining unpaid balance will accumulate and would be more difficult to pay off later. It is better to start from zero than going back to unpaid balances. Paying off your full balance will ensure the creditors of your trustworthiness. You could use this later on when you need a higher loan.
Build on Good Spending Habits
Some people have been in trouble for bad spending habits and this is actually more common than you think. You may have experienced the same thing so it is very important to be able to build on sustainable spending habits early on. Although it may seem hopeless to get further loans, there are actually some ways for it to be possible still. According to Jacaranda Finance, it is still possible to apply for loans even if you have a poor credit history. Just as long as you have a steady source of income or currently employed, it is possible to have a loan.
Always Check Your Credit Report
Make sure that you check your credit report once in a while to validate the information. If you find any anomalies, dispute the information with the bureau right away. Credit monitoring is important to detect if there is any identity theft. It is to ensure that you are protected and that your credit is not being used by fraudsters because this could get you in big trouble. Make sure that you get the advantage of the free copy of your credit report each year. To do this, always keep your receipts so it will be easy to compare documents later on.
Stick To A Strict Budget
If this is a practice you haven’t started with, you better make a resolution to create one on a monthly basis or weekly basis at least. You should be making allotments for your earnings when you get a hold of it, rather than trying to allot the remaining money you have left. Start by securing your budget for your daily expenses and needs, for your payables, savings, then for investment. Strategize how you spend and pay, make a list of payables that are beneficial to pay with a credit card and those you should be paying with cash because they don’t earn points. It is better to control how your money flows and track where you spend them rather than being surprised that you don’t have anymore. This ensures that you keep up with paying your dues and that you get to earn more points while avoiding the penalty.
It’s never too late to start having good habits and earning more credit points this 2020. All it takes to ensure that you would have a better credit standing is to exercise more self-discipline and wiser spending habits. Maintaining a high credit score has perks that you can enjoy in the future and it would speak a lot about you and how stable you are in terms of your finances.