Borrowing is usually not a wise way of funding your life, dreams and goals. But at times you can’t but borrow while at other times borrowing is actually cheap.
When applying for credit, a healthy credit score is important.
What can you do to improve your credit score?
- Always pay your bills on time with at least the min required payment.
- Keep your amount borrowed less than 50% of your total credit available.
- Avoid applying for multiple credit products within a short span of time.
- If cancelling credit cards, avoid cancelling the ones with the longer track records.
- If retaining a high credit score is top priority, then avoid loan consolidation. The reason being is that your total credit available will decrease while keeping the total borrowed the same.
If you don’t have a credit score yet you’ll need one as financers want to know who they’re dealing with.
Here are two solid ways to start a healthy credit score from scratch:
- Get a secured credit card. These are credit cards that are secured with a down payment and are typically offered with lower credit borrowers. Obtaining one of these cards and paying it off regularly will help build a track record.
- Get a loan from a credit rebuilding agency/bank. The interest rates may not be optimal, but these loans are for the sole purpose of making regular monthly payments.
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