01/25/2022
Below are some helpful tips that could help you build your credit and lead to a potential loan in your near future. It’s important to understand that your credit score won’t change drastically overnight. However, if you take some of the measures above, and remain consistent, you’ll be surprised at how far it can get you.
- Set up automated payments or payment reminders. Payment history plays a big role in your credit score, so don’t let yourself fall behind. Pay your bills every month, on deadline, no matter how small the number may be. If you can, set up automated payments from your bank account. This ensures you never miss a payment.
- Stop adding more debt. Don’t add fuel to the fire by racking up credit card debt or making big purchases. Monitor your cash flow, stick to a budget and steer clear of opening any new loans or accounts. Work on reducing the debt you already have, even if you’re only making small dents at a time.
- Be consistent. Try to be as consistent as possible in your credit activity. Suddenly decreasing your payment amounts can send up a red flag, as can racking up tons of debt in one month. Avoid taking out any cash advances as well, since these indicate financial distress is on the horizon.
- Get your credit utilization under 30 percent. You generally want to use less than a third of your total credit availability, so pay down your debts until you hit this threshold. Low credit utilization shows you’re responsible with your funds, and it can help your score as well as your chances at a future mortgage.
