Credit – as much as we might dislike the concept, there are times where we’ve relied upon using it, and you want to be able to have it to fall back on. The kicker? You need a decent credit score to get approved by lenders. Generally, these lenders consider anything above 700 to be a good credit score. If you’re looking for an auto loan, for example, shoot for a credit score of 720+ and 760+ for mortgages.
All in all, financial experts recommend a score on the higher end of 760 or better. In this range, you’ll also get access to the best interest rates, which can help tremendously during the repayment process. Whatever your current credit score might be, here are 3 ways to improve upon it!
Say no to new credit cards.
First and foremost, you’ll want to say no to more credit cards. Although it might seem counterproductive in building your credit, having too many credit cards is never a good thing, even if you’re a pro at paying them off in time. Instead, limit yourself to one to four credit cards. If you have more than four, you’ll want to consider eliminating the ones you don’t use regularly or come with one of those pesky annual fees. And, whenever you get new correspondence from a bank, whether it’d be a letter or email, ignore it – no matter how good the sign-up bonus, interest rates, or rewards seem to be.
Set your bills to automatic payment.
Even if you consider yourself to be one of the most punctual people in the world, you’re only human at the end of the day. For this reason, you’re bound to be late on a payment at one time or another. Nowadays, most large banks allow you to set-up autopay through a central user dashboard. You can always sign-up individually for an automatic draft through the credit card company itself, too. And, if you want to pay more than the recommended monthly balance, set your goal, and make it happen. This way, you’ll most likely pay less interest in the long-run.
Don’t abuse credit inquiries.
As odd as it may sound, you should be very wary of credit inquiries, as these can affect your credit negatively. Remember, there are soft inquiries that don’t make as much of a difference – like when they check your credit during a car rental – and then, there are hard inquiries. Hard inquiries are absolutely necessary at certain stages of life and include the following: auto loans, mortgage, student loans, or an apartment application. If you’re able to swing it, plan ahead for new purchases, and you’ll avoid running too many hard inquiries against your credit all at once.
Staying on top of your personal and professional life can be a challenge. At King’s Cove Apartments in Kingwood, Texas, we hope to make your daily routine a bit easier with tips and tricks that can be applied to every aspect of life.