Showing posts with label Better Credit. Show all posts
Showing posts with label Better Credit. Show all posts

Thursday, October 21, 2021

4 Helpful Steps to Getting Better Credit

It's often stated that cash is king. While cash is important, nothing beats an excellent credit score, especially when credit can get you so much farther these days. With an excellent credit score, you’re able to open so many wealth-building doors. 

You can leverage an excellent credit score to get amazing interest rates, points, and loans. Not only that, but it makes big purchases, like houses or cars, much easier since the people you’re working with know they can trust you. 

If you don't have a great credit score, there's no time like the present to begin the rebuilding process. Consider the four helpful steps in order to achieve better credit.

Pay on Time

While there are certain tricks of paying at a time when the credit bureaus track everything, start by focusing on making payments by your assigned due dates. Also, it's important to note that many creditors require you to pay by a specific time of the day. 

If your credit card payment is due on July 27th, don't think that you can pay anytime before midnight. In fact, many creditors require you to pay no later than 5 PM PST or 8 PM PST. If you pay even a minute later, it's considered late.

Get a Consultation

In order to leverage your credit moves, consider a consultation with a financial professional. Talking with professionals who know how to navigate financial management and credit scores, professionals at establishments such as Luckie Seven Solutions Inc, means it should be easier to get a better understanding of how long it can take to improve your credit, practical steps, and credit goals. 

They can even help you come up with a financial plan to improve your score and keep you on track to maintaining it.

Pay the Balance Each Month

When you're able to pay the full balance each month, this may open up more perks from your creditors such as grace periods and points. Be intentional about planning your spending on your credit cards

If you can focus on purchasing the necessities with your card, pay it off at the end of each month. You should already have the money to cover the necessities so it won't be difficult to develop a strategic system with your credit card usage.

Use No More than 30%

If you're not the most disciplined person, don't use the entire balance if you don't need it. If you have access to a $1,000 credit limit, try not to use more than $300. 

Unless you know that you can pay the balance every single month, try not to use more than 30% of your available credit. It doesn't look good when you have a habit of maxing out all of your credit cards without paying the balance down completely.

While there are financial advisors who preach the "debt-free" gospel, it's only practical if you don't know how to manage credit wisely. In fact, it's best to learn how to manage credit wisely in order to leverage it and build wealth. 

Plus, when you have excellent credit, you'll be able to recognize how much access you truly have because creditors trust you to manage their resources well.

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