Having a good credit score will not be beneficial for you if you are planning to apply for a loan soon. But, it is also essential to have a good credit score even if you want to apply for an additional credit card or simply going for other alternatives like no credit check loans no guarantors. When it comes to ensuring you have a good credit score, there are a few things and habitual changes that you would need to adopt.
The following sections will talk about a few practical tips to keep your credit score perfect. Let’s get down to it then now shall we!?
It is best to treat all your debt equally when it is time for repayments
It should be kept in mind that your credit score is affected by both installment or tradeline debt (better known as mortgages) and revolving debt (the money you owe to your credit card provider).
Time and again you might have heard about prioritizing your debt as per their interest rates and pay them accordingly. Well, this practice should be avoided in normal conditions. The best possible approach is to treat all debt equally and pay back the amount you owe on time.
Never spread your debt across multiple credit cards
Often people tend to spread their debt across multiple lenders. Similarly, people who own more than one credit card, often use both to meet their needs. Spreading your debt across multiple lenders might seem like a good idea at first but chances are high that the whole thing can backfire at any given moment.
It is best to clear off all your debts at a single go. This will allow you to decrease your total debt amount thus boosting your credit score instead of negatively affecting it!
Another healthy habit is to opt for balance transfer cards that will transfer all your debt into a single card. This will make it easier for your track your expenses and pay off EMIs every single time.
On-time repayment of debt is always the way of the wise
Did you know that your repayment history affects more than thirty percent of your current credit score!?
This is one of the many reasons why you should be at the top of your game when it comes to financial discipline. If you are having a hard time with on-time repayment of your debt in the form of EMIs, it is best to set up electronic reminders for the same.
You can also opt for auto-debit feature offered by leading lending firms. Here, the EMI amount you owe to your lender will be automatically deducted from your bank account. This is beneficial for you especially when you are having a hard time to remember the payment deadline.
Your credit score is an important aspect of your life. It is the critical data that reflects your financial discipline and overall monetary situation. We live in a time where uncertainties are more common than you think. Population boom coupled with the rising cost of living often leaves the pocket of the common person empty. To tackle a financial situation, taking out a loan might help. But if your credit score is not up to the mark, things can get ugly. Be sure to abide by the steps mentioned here for the best results.