Maintaining your credit health is almost the same as maintaining a healthy life. Just like your health needs balanced nutrition and proper exercise, your credit health also needs attention, balanced spending, and responsible behavior. Your credit can be a very important tool in your financial life and you need to know how to Build Credit score.
Are you planning on buying a new house or a land? Your credits will come in great help here. But if you don’t manage your credit wisely, you are going to just hurt yourself financially.
In this case, you should grow some healthy habits to keep your credit from ruining your financial health. Take control of your finances and establish good credit. Do not be confused: Credit score and credit reports are two different things and when you understand this, it makes it much easier for managing your credit. We are going to provide you a complete guide how to build credit score.
Here are 4 healthy habits you want to incorporate into your life how to build credit :
Wise choice of credit card
Getting calls from different companies to sign up for their credit cards? Don’t get drawn to their offers, research! It is important for you to choose a credit card according to your circumstances. Do your research on different credit cards before signing up.
Also, make sure to ask for their terms and conditions because it can be useful for you. Keep in mind of two things: to look for low-interest rates and making sure it has no annual fee. We also suggest you compare different credit cards to find out which one best suits your specific needs and requirements.
Don’t max out your credit card because it will affect your credit score and pay your dues in full each month to maintain a clean record. Limit yourself to one major credit card with the limit you can afford. Don’t go overboard with too many credit cards on your name.
Build credit history
Make using your credit card “responsibly” your number 1 priority. Credit cards can be used to build your score but it can also come down falling as an unforgivable curse due to misuse of it. Be sure to pay in full each month. This saves you some cash and polishes your credit report.
A firm credit report is a major part of securing your mortgage or a car loan at a lower rate. Try regularly reviewing your credit report. It is a vital part of managing a good credit score and guarding against identity theft.
Are past credit mistakes haunting you and resisting your credit score rise? If you’re wondering what to do now, we suggest you should pay off your debts in full so that you can start repairing your credit history.
If you maxed out your several cards, worrying won’t help- paying off the bills will. You can close down one or two afterward but keep your oldest card running.
Lower your interest rates
Are you overwhelmed by the high-interest rate of your credit card? Don’t worry, you may not be stuck with it forever. But how? You can always negotiate with your bank or credit card company to get a lower interest rate. If they deny, try asking them every now and then. Perseverance might pay off in this case.
If the first option doesn’t work, transfer your money to a new card with a 0% interest rate. This will allow you to pay off your debt easier and manage your credit score better.
Knowing true facts about credit cards
Let us tell you a fact: you don’t need to sign up for credit cards if you don’t need one. Yes, it’s true! Maybe you are better off without one. It may make you feel valued but it will all come crumbling down when you end up owing quite a lot of cash to the banks. And if you are using one, be careful about how and when you are using it and remember to keep paying off debts in a timely fashion.
When you learn how to build credit properly according to your situation, you will be fine. But if you’re unsure, then don’t get one in the first place! But if you absolutely must, we would suggest you visit Mombo Sacco for smart savings! They offer loans up to 5 times your hard earned savings, and very low interest rates. It’s quick, it’s simple and they are upfront about their dealings so no more worrying about any hidden charges and sweetest of all? It’s all digital so say goodbye to tedious paper works from now on.
Along with Mombo Sacco, try regulating these steps into your life because keeping a good credit report can get you the most out of your credit. So, no matter what your situation is, try to keep your records clean and the end your payoff is guaranteed to be sweet!