Keys for Improving Your Credit
The key to improving your credit score, is more credit. Getting a credit card and using it responsibly is the main way to do so. It is important to get a card with the lowest possibly interest, as well a card with no monthly account maintenance free or an annual fee. Both of these will leave you feeling blindsided as they suck money right out of your account. It is almost impossible to find the perfect credit card, but knowing what type of user you will be is important to pick which card is right for your lifestyle.
In order to improve your credit, go out and spend less than 20% of the total credit you have. You must use credit in order to gain credit. Paying your card off every single month will help your credit as well. If you miss only 4% of your payments, it can ruin your credit score. Bad credit can haunt you for years. There may be a period where you loose a job, or your house has to be foreclosed on.
It is very important to know your income, create a realistic budget, and manage your debts. Staying on top of your finances, your bills, and your monthly card payments can offer security if your life were to dramatically change. Credit cards can be dangerous if they are not used responsibly. As a consumer, you must research each card and learn of its benefits.
Many cards come with rewards that you can only obtain if you reach a certain spending level or use the card within the first month. The rewards are often times advertised whereas the interest rates and fees are not. Learning the in’s and out’s of the card before you apply is very important. This will help you use the card most efficiently and allow you to raise your credit score if used responsibly.