The use of Credit Cars are often quite a controversial topic, some say credit is bad and others feel credit can be used responsibly. Overall, using credit is going to cost you some money. There are ways to be savvy about borrowing and therefore costing you less to borrow. One of the biggest factors in the favorability of the rate you are assigned is to do with your Credit Score. Take the 3 steps to enhance your credit below and see how your financial life can improve!
The first step in enhancing your credit score is a boring but fruitful admin job! Using a credit search such as Experian will give you an understanding of where your paper trail is currently. Every transaction, every default and every late payment is recorded and therefore used against you when determining your Credit Score. Start by checking your previous address, checking your surnames. Make sure there are no errors and ideally no gaps in addresses. Registering for the local Electoral roll will also give your address credibility.
Now this step is not for everyone. If you are unable to control your spending then you will sabotage your own efforts if you continue with this suggestion. Applying for a store card or another Credit Card with the mindset that you will not spend anything you cannot afford to pay off that month. The whole purpose here is to show how responsible you can be with credit and therefore why you deserve to be awarded more credit. Search more ideas here.
Pay off debts
The last of the 3 steps to enhance your credit will take time, it will take a plan and it will take sacrifice. None of these should put you off, it is a very worthwhile and liberating achievement. However, it is hard work. The less debt you carry though, does not necessarily mean the better your credit. If you haven’t ‘played the game’ so to speak, you won’t exist in enough places to seem credit worthy. Overall, paying down debt will increase your credit score as you are monitoring it and whatever the reason for paying down the debt – maybe to get a mortgage or your own phone contract, will be reachable.
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