A good credit score is the only chance you have to show banks and lenders your credibility and ethic as a paymaster. By following a few easy steps you’ll be able to work towards a better credit score. Having a good credit score opens doors as far as securing future financing is concerned, and probably will save you some money simultaneously. Keep reading to learn more!
Pay Bills Early or On Time
Who doesn’t love receiving money when they are supposed to? Banks love when you regularly pay your bills on time. Paying on time gives you a great reputation. Early payments also rid you of the hassle of remembering what needs last minute payments and what does not.
Maintaining your Job
If you have been at your job, earning a steady income, for a significant amount of time, you are more likely to be trusted with more credit facilities. The steady income means that you are most likely not going to be late or even miss a payment due to a bank or credit card company. The more they can trust you, the better your interest rates will be, in the case of car loans and home loans.
Own a Home, Car or Savings Deposits
A car, home or savings deposit are considered assets to the bank. The more assets you own, the better your credit report looks as it signifies you are in sound financial condition.
Pay Off Debt Quickly
Sometimes we can’t help but to be in debt. By only making a minimum payment, you will take a very long time to repay the amount owing and the every-expanding interest charges. If possible, pay the full amount owed, before they’re due. Otherwise, pay as much as possible instead of just hitting the minimum balance. A bank has the ability to see what you have outstanding with other banks and they take this into consideration.
Have a Long Term Relationship with One Bank
Not that kind. If you have been with a bank for a while, they will know that you are good for your word. Banks can also treat you better (with better facilities, lower loan interest rates) if you are a long term customer as they wouldn’t want to lose your business.
Want the best financial deals in town delivered to your inbox once a month? Sign up for iMoney’s Monthly Round-Up today!