When it comes to improving your credit score, there are a lot of things you can do. Often, people focus on the big steps forgetting about the simpler and easier ways. Don’t commit the same mistakes by reading on. Below are some of the simple practices to keep in mind and you can do as part of your day to day routine that will help improve your credit standing over time.
Use Your Credit Card
If you just got your new credit card and you’re starting from scratch, the trick is simple. Just use your card when making your everyday purchases because you have to use credit first before you can build a credit score. But more important than using your credit card for purchases is to make sure that you’re paying your dues on time.
Balance is the key with this habit. Keep your balance below the 30% credit limit. If you let your charges go beyond that recommended percentage, you might put your credit score at risk.
Pay your bills on time
Other than thoughtful regular use of your credit card, the next step to building your credit is to pay all your bills on time. And that includes all your bills from utility bills to rent, loans, credit cards, mobile phone contracts and more. Make it easy to remember those due dates by setting up calendar reminders or you may opt for auto debit deductions but only for fixed monthly fees to avoid complications.
When you pay your bills on time, you’re not exactly improving your credit score but you are avoiding putting it at risk. So strive to pay your bills on time if you don’t want your credit score diving downwards.
Monitor your accounts
Majority of people rarely check their accounts and this is not a good habit. What’s good for your credit standing and your finances in general is if you take your time to monitor your accounts on a daily basis if possible. If you have a lot of accounts, it make take time but it pays off well especially because credit agencies and banks can also commit mistakes.
By being a more active consumer, you’ll be more aware of what’s going on and where your money is going. But more importantly, you also protect your accounts from any errors that may significantly affect your credit score.
Whether you’re new to this credit score thing or you have bad credit that you want to improve, the key to achieving what you want is patient. Oftentimes, consumers are too impatient to see improvements on their credit score to a point that they get frustrated when they don’t see anything. You need to remember that building credit does not happen overnight. It may take years before you build a good score. While using your credit cards, paying your bills and checking your accounts, patience, at the end of the day, is what you’ll need.