Did you know that all the financial decisions you make today, could affect your ability to buy your own home in the future? And did you know your credit score plays a key role in this? It’s true. But despite this, many Americans have never even looked at their credit score or know what it is. In fact, four in 10 people have actually never checked their credit score before. That’s according to a survey by Chase Slate Credit. However, lenders view credit scores very seriously. In fact, a low credit score can stop lenders offering you the most competitive interest rates. A credit score takes into account your history of making bill payments on time and your spending and borrowing habits. But even if your credit score is poor, there are simple things you can do to help build it up.

Take out a personal loan

You may wonder how being in more debt could increase your credit score. But according to Crediful (https://www.crediful.com/best-personal-loans-for-good-credit), the trick is to make sure you make all of your repayments on time, without ever missing any. By taking out a personal loan and always making your repayments on time, you can show lenders that you are a “safe bet”. They can lend money to you without having to worry about having to chase payments at a later date.

Pay bills in your name

Even if you don’t currently own your own property, it is still important to pay some bills in your name if possible. This could be anything, from a cell phone bill to utility bills, but the most important thing is that you are making regular payments under your name. This shows lenders that you have a positive history with money, and makes them more comfortable lending to you.

Sign up for a credit card

Again, this may seem odd, as it means getting into debt in order to improve your credit score. However, the key here is to make sure that you only use the credit card for a small amount each month, and pay it off in full at the end – rather than just paying the minimum payment. This means that you are making regular payments without having to get further into debt, and this can help to raise your score.

Check your score regularly

When trying to build your credit score, you need to ensure that you are going in the right direction. Therefore, it’s never been more crucial than to check your credit score regularly. You may not realize, but you can obtain your score for free from the three major agencies each year. And if you space this out over the course of the year will give you a good idea of how well you’re doing.

There’s much to gain from making sure you build up a good credit score. And it’s even more important that you start now. Looking after your credit score means that the financial security you never thought possible, could be well within your reach in the future.

This entry was posted on Tuesday, July 4th, 2017 at 4:36 pm and is filed under Credit, Credit report, Credit Score. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.