How’s Your Credit Score?
Ah, the perfect credit score. Some people are under the impression that if their credit were at the very top, the world would be at their beckoning call. While lenders never roll out the red carpet, there are definitely advantages to being in their credit elite. You can save tens of thousands of dollars on your mortgage, you never have to worry about your credit keeping you out of a good job, and the bragging rights at cocktail parties are the icing on the cake. The following are some quick tips to making your credit slowly but surely reach for the stars.
Pay Your Bills On Time
Paying your bills on time may sound like a “no duh” kind of thing, but you would seriously be surprised how many people have a real problem with doing this, instead opting for cash advances when they should really be saving that type of loan for an emergency.. When you pay your bills on time, you show your creditors that you are a responsible person. This tends to put lenders more at ease about your ability to pay an additional bill.
Take Out a Loan, Make Timely Payments
Your credit score is not a debt score, so it won’t help you to instantly knock out a debt. Pay on it slowly, and you’ll establish a credit history. The more positive credit history you have, the less risky you look to potential lenders.
Have Credit Cards
Credit cards give you available credit. As long as you don’t use this available credit too much, your utilization goes down. This means you aren’t using all you could be, which means you’re a reasonably stable person who is likely to spend within your means.
Use Your Credit Cards
When you don’t use your credit cards every so often, they tend to get closed. Closed accounts don’t help your credit any, but accounts that have been open for a long time look great. Plus, having small revolving balances can also look okay, though ideally you should pay off your balance every month.
Never Cosign a Loan
The kind of person who needs a cosigner is the kind who never pays on a loan successfully. When you cosign a loan, be prepared to either take a serious credit hit or pay it all off yourself.
Having great credit opens a lot of doors in life. When you follow the above directions, your credit will start to improve. Over time, you will eventually reach the top tier.