Credit Score: 5 Tips to Build a Good One

Credit Score: 5 Tips to Build a Good One

Only by typing credit score on Google, you’ll come across millions and millions of results. Big headlines on how to build your credit history, good or debt, and the list goes on. Building a good credit score requires time, effort and consistency, and unfortunately for you, it cannot happen overnight. See it as a long-term commitment to yourself. In this article we’ll see few simple and pretty easy steps to follow, in order to boost your credit score. 

Here’s how to build a good credit score by yourself! 

1. Stop paying bills manually 

We get it. You have so many things to take care of, that sometimes you forget things. Happens to everyone. Sadly though, when it comes to payments, this kind of behavior can seriously affect your credit score, and not for a good reason. Improve the way you pay your bills by setting automated payments. This way you don’t have so many things to remember, and your bills work on behalf of you. 

2. Spend only as much as you can afford 

It is tempting to use your credit card and buy goods without using money. But then again, you forget that at the end of the month, you still have to pay for your purchases. That being said, is very simple to understand that building a good credit score has to do with how responsible you are after all. If you’re putting on you your card more debt than what you make is obvious that you’re going to miss payments. And you know who doesn’t like that? That’s right, your credit score! 

3. Don’t pay your credit card balance in installments 

Making full payments every month, can be a great booster for your credit score. How that works? It’s simple. You just have to give to creditors and lenders what they want. Which is nothing more of your ability to pay bills.  

4. Show your old debt 

Some people think that once they get rid of a debt, they should remove it from their credit report. But in fact, this is a false opinion. There is a big difference between good and bad debt. Showcasing your old and paid-off debt shows that you’re capable of handling your debt with success. If this is not a great waty to improve your credit score, then what? 

Remember to keep it simple!

5. Don’t apply for too many cards 

They may be offered free of charge, but too many credit cards will make you spend more. It’s simple math. If you have more credit available, then you buy more stuff, or more expensive stuff. The more you add on the pile, the more you have to pay off later. Having a variety of inquiries for credit cards, can negatively affect your credit score. 

Keeping up with your credit score seems difficult and frustrating. It’s something that you have to deal with, though. As long as you’re following a plan, and you remember to keep it simple, everything will be fine. Do you think that you cannot make it alone and you need professional help? Baby Boomers Financial will gladly be your consultants or the saviors of your credit score if you prefer. Contact us for a free credit review!