Having financial stability and access to credit is vital in your personal life or business. It opens up so many more financial doors for you. Most people, at any given point in their lifetime, aren’t able to pay for something like a car or house outright with cash, being able to get the loans you need at low interest rates when you need them is so important. When it comes to actually building yourself up good credit, it comes down to time and effort, and you have to hold yourself accountable. A poor credit score means to an investor, that you can’t be trusted back to pay the money they lend you. That extra risk means that if you can get a loan at all, you’re going to be getting the highest interest rates and paying a ton of money over the years.
Having a credit card that you don’t use, or use sparingly and immediately pay off, is what you need to build credit. On top of the convenience of having that card in your pocket, they often offer rewards and perks that you’ll want to take advantage of. But along with that credit card, comes the big responsibility of repaying all of that debt. We can’t stress enough the best way to build that credit score up consistently is just making all of your payments on time every month. Slightly more than a third of your credit score is based on your payment history, so if you regularly struggle to pay on time or in full that will be reflected heavily in your overall credit score.
Your credit score isn’t the most accurate number but it does mean a lot in the grand scheme of things. Put yourself in the shoes of a lender, you don’t want to give money to someone likely to either not pay you back or take years and years to do so. You DO want to lend to people who you feel confident will consistently pay back their debt, and having a high credit score shows you are more trustworthy with paying back money on time.
Credit Score Assistance
We strongly suggest living within your means, but we know emergencies happen. Don’t gather too much debt at once and make sure you do pay off your debts in full when the bills come due. Your credit score takes time to build up, but if you’re doing the right things you’ll see good progress. Get assistance with your credit from credit monitoring Raleigh.