Cash 1 Blog
It’s Not Impossible To Build Super Credit
If you have poor credit, improving your credit isn't easy and keeping it is even tougher. As unfair as it may sound, your credit score is used in many areas of your life that go far beyond mere financial issues. It’s used to judge you in many facets of your life, from job applications to housing, your credit score goes with you, and unfortunately, people rely on it as an indication of your character. We know many of you have gone through tough financial times and your credit score may have slipped a bit, but it can be rebuilt and maintained. Here are a few tips on how to keep your credit score up:
Don't Max out Your Cards
As odd as this may sound, the limit on your credit card is actually higher than the credit ratings entities would prefer you to spend. Keep your spending in control whenever possible and don’t run your cards to the maximum. This will take points off your score.
Keep Your Balance at 30%
Use less than thirty percent of your available credit. This indicates to the credit ratings folks that you have a good handle on budgeting and are not spending beyond your means. This will help improve your score.
Keep More than One Line of Credit
But don’t use them all. Keeping multiple cards with available credit also indicates that you prefer to have multiple options when it comes to finances. Your score can improve just based on the fact that you have multiple credit cards but do not use them.
Keep Only Cards with No Annual Fee
Keeping multiple cards doesn’t mean you have to keep multiple fees. Every credit company has a no-annual-fee option and the credit scorers do not take into account whether or not you have cards with fees or not.
Never Miss a Payment
Even one missed payment can put a dent in your credit score. Keep up to date with your payments and whenever possible, pay the balance of your card.
Incur Small Charges Every Now and Then
Purchase something with your card, then pay it off immediately. Do this on occasion and you will seriously build great credit. Charges that are paid off get more preferential consideration when a credit rating company calculates your score. It shows that you are willing to use the credit (as opposed to opening the credit line and then putting it away for a rainy day), but not willing to spend beyond your means.
Monitor Your Credit Rating
There are many programs online that can help you monitor your credit rating. Simply do a search for ‘credit rating’. This is important because at times, inaccurate information can be posted and it is best to dispute that information as soon as it shows. Keeping on top of these rating anomalies will also demonstrate your interest in protecting your good credit and this will help improve your credit score. We at CASH 1 understand it’s not easy building credit, and sometimes you run into tough financial times. If this is the case for you, come see us for easy cash loans and get cash now.
Joseph Priebe takes pride in assisting audiences with his articles to help them make sound financial decisions.
With over ten years of experience writing financial content his goal at CASH 1 has always been creating engaging and easy-to-digest information for anyone searching for immediate or long-term monetary solutions.
When Joseph is not writing about personal finance, you can find him photographing the Southwest United States with his 4x5 Graflex Crown Graphic camera. He is based in Phoenix, Arizona.