Having a good credit score is an important part of everyone’s financial future. Your credit score comes into play anytime you want to request a line of credit, apply for a credit card, a mortgage and more. If you have a negative credit score it can greatly impact your ability to own a home, a car or even just pay for that vacation you want to take.
While having a negative credit score doesn’t always mean you will be turned down for borrowing, it may mean that you will be charged a higher interest rate by the institution you have applied through. Alternatively, when you have good credit, you are usually provided a much better interest rate and have a much easier time getting credit.
There are many ways to raise your credit score and therefore improve your chances of being approved when you apply for credit.
Easy Ways to Get a Good Credit Score
Pay Your Bills On Time
Late or unpaid bills can have a negative impact on your score, so make sure that you are making the right financial decisions. Paying your bills on time every month will help you build your credit score and show future lenders that you have a solid financial background. To make sure that you don’t miss any bills that are due, it’s a good idea to set reminders on your phone and set up automatic payments. This will ensure that your bill payments are never late.
Don’t Charge Too Much
If you want to get a good credit score, make sure you don’t charge too much on your credit cards. If you max out your credit cards, no matter how high or low your limit is, your credit score will go down. Instead, try to keep your balance under 30% of your total credit limit. The lower the percentage, the better your credit score will be.
Remove Negative Credit
Sometimes certain life events can have a negative impact on your credit. If you have any negative credit history, the best way to get a good credit score is to find a way to have it removed. In order to do this, you can dispute inaccurate credit details or make a deal with your creditor in order to have them remove it. Once the negative is gone, the good on your report will have a chance to shine through and increase your credit score.
Improving your credit score takes a lot of discipline and persistence, but it is worth it. Just make sure to always pay your bills on time, don’t over charge on the credit cards you already have and make the effort to remove negative credit from your report. Taking these steps can help to improve your credit score and your chances of obtaining credit in the future.
Elizabeth Lampman is a coffee-fuelled Mom of 2 girls and lives in Hamilton, Ontario. She enjoys travelling, developing easy recipes, crafting, taking on diy projects, travelling and saving money!