People with a good credit score (700 and above) have a good chance of seizing many opportunities. For example, they are more likely to be granted a loan, get better interest rates, and pay lower finance charges on loans.
So, how about you? How’s your credit score? To truly level up your life and set good credit score practices for your children to emulate, you need to level up your credit score. Some things that you can do to build your credit score include:
Online monitoring tools
The internet has a wide variety of tools available to help you get your credit score up. One such tool is Smart Credit. This platform allows you to track, build and master your credit score. With this tool, you’ll have access to Money Manager, a feature that will enable you to monitor all your accounts online. Then there is the Smart Credit Report that allows you to view your credit report.
With Smart Credit, you are also able to address identity theft and ask creditors questions. The Smart Credit Report also allows you to get your credit report in a better position when employers look at your report. Similar credit report tracking tools include Mint, which helps you budget and track your debts to improve your credit score.
Credit Karma is another of these that allows you to track and understand your credit score.
Don’t miss payments
Sometimes it happens accidentally. Other times, it’s because we enjoy procrastinating and don’t understand that late payment is hurting our credit score. Your payment history is a critical factor contributing to your credit score.
When you make a payment that is at least 30 days behind, it can be reported to a credit bureau, which will hurt your credit score. So, maybe you need to set reminders to keep up with your payments. Whatever it is, remember that the early bird will have a better chance of building his credit score.
Use your credit cards wisely
Your credit card can do much good in your life, but if you’re not careful, it can be used to your detriment as it relates to your credit score. So, the tip isto charge only what you can afford to pay. Overcharging causes your debt to build up, and all this can damage your credit score. While we are on the subject of credit cards, it is also highly recommended that you only keep one credit card. This will make it simpler to keep up with payments and balances.
Keep your accounts open for a long time
You’ll see a list of your accounts plus the dates you opened them in your credit report. An account that has been around for a while will help you to build a good credit score. This means do not close accounts prematurely. There is a right way to close an account and a wrong way. For example, closing your oldest accounts will severely hurt your overall score is the wrong way of closing an account. Whereby, closing an inactive account that has a high annual fee you no longer use could be a way to save money from being wasted. Develop a strategy that fits your current credit file set up, and allows room for growth. Just remember that 35% of your credit report comes from payment history and 15% comes from length of credit history. Plan wisely.
You can improve your credit score by doing different things. This includes using digital tools and apps, having good spending habits, and keeping your accounts open. You can do plenty of things as a father to keep your credit score strong, so you can always get the loans and opportunities you need to give your family the ideal life and start influencing positive change in your life. Visit pleasecmc.com to learn more.