A credit score is a three-digit number that ranges from 300 to 900 which indicates your creditworthiness. A credit score tells lenders about where you stand and they decide what rates to offer you. Any credit card companies, lenders, an insurance company, banks and some employees check your credit report and stats before lending you money. A credit report is provided by three major reporting agencies namely TransUnion, Experian and Equinox for once a year.
If you have a credit score of 300-580 then you will be denied credit completely or only approved with very costly interest rates. Only a credit score of 780 or above you will get lower interest rates in the market. There is no magic trick to improve your credit score as quickly as possible. You will have to maintain your credit score with good planning and serious working. Following are some points to remember to establish a healthy credit report-
Pay Your Bills on Time
Late payments will put bad impact on your credit file. Therefore, it is suggested that you should always pay your credit cards bills or loan installments within the agreed period if you want to have a clean and healthy credit profile. Keep reminding yourself about when your bill payment date is about to come. It is better to consider setting your bills up for automatic withdrawal directly from your checking account. So make sure you have enough funds in your bank account when your loan repayment tenure approaches.
Lower Down Usage of Credit Cards
You should learn how to lower down the usage of credit cards if you want to have a perfect credit score. The lower you use your credit loans the lower will be the debts. It is easy to use credit cards but paying off bills is not easy when you have restricted monthly income to rely on for all day to day needs. Therefore, you should stop using credit cards for each and every purchase.
Stop Closing Unused Credit Cards
Cancellation of the unused credit card can actually lower down your credit score. It is better to use your credit cards occasionally so that the issuer doesn’t report your information to credit agencies. It is also important not to use the maximum number of credit cards if you are not expert enough to use them wisely and paying off bills on time.
Opt for a Secured Credit Card
If you have low or no credit history then it is always a good idea to get a secured credit card. A secured credit card can help you to build credit if it reports information to the credit bureaus.
Is it good or bad to combine finances with your spouse?
Most of the couples are cautious about their earnings and expenditures and they plan well in advance as to how they would manage finance. In some cases, they make decisions even before their marriage. In a way, it is good to have such prior planning for the financial management of couples. Read on to know the advantages of combining finances with your spouse…
- When you have combined financial management at home, there is the possibility of easy accessibility to cash. In case the wife is a homemaker, it would be easier for her to see to the daily requirements without bothering her spouse much. It saves a lot of time and keeps away misunderstanding regarding financial issues.
- Combining finances of a couple help in getting more employer benefits, insurance policy coverage and savings for your retirement years. It adds on to your savings automatically rather than separate financial management.
- Paying taxes is quiet expensive if each of the spouses has separate financial dealings. You will save a lot on your tax returns when you have combined finances.
- Combining finances with your spouse could enhance the possibility of getting additional loans in future. Sharing credit card has another advantage of boosting your credit scores remarkably if you prompt in your repayments.
- Keeping a shared record and filing system for all the expenditures makes things appear and there is no difference of opinions as for as the financial dealings are concerned.
- Apart from these monetary benefits, having combined financial management in the family creates openings for more info www.paydayzoo.co.uk communication and sharing of ideas in the family.