How Do You Improve Your Credit Score?
Your credit score impacts your entire financial life. It determines what kinds of purchases you can make, how much interest you pay on loans, and what type of loans you qualify for.
However, a lot of things can impact your credit score, from past mistakes to surprise financial hardships. So its important to learn everything you can about calculating and improving your credit score. There’s never a bad time to try to improve your credit score, though, and once you do, you’ll see the financial benefits. Here are a few things that you can do to get started on the road to a better credit score.
Pay Your Bills on Time
You’ve probably seen this credit score tip before, but it’s worth emphasizing. Always pay your bills on time. As a matter of fact, if you can afford to pay in two-week cycles instead of month-long cycles, you can improve your credit score even further.
In any case, on-time payments boost your overall credit score, while late payments harm that score. At the end of the day, it’s always best to make your payments on time and pay off debts as quickly as possible. Not only will that improve your credit score, but it will also give you some financial peace of mind.
Use a Credit Card -- But Use It Wisely
A lot of people scoff at the idea of credit cards. After all, who wants to go into debt when they don’t have to? You may very well prefer using cash or a debit card. However, if your credit score is virtually nonexistent - say you’re young and just starting out, for example - getting a credit card is a simple way to start building that score.
That said, you should use your credit card wisely. When you don’t see money leave your account right away, it’s easy and tempting to rack up a bunch of purchases fast. This can leave you under overwhelming debt fast, which will harm your score rather than improve it.
When you get a credit card, make a plan for how you will use it. Some people only use their credit card to fill up at the gas pump, for example. Some only use their card for groceries. Whatever your plan, make sure that you always make your payments on time.
Add a New Credit Type
If you’ve been using a credit card for a while and still need to improve your credit score, you might consider taking out a loan. When you have more than one type of credit, you can increase your credit score. Have you been planning on a big purchase like a car or a new appliance? Then you might as well increase your credit score in the process.
Find Loans and Credit Cards through Bundlefi
When it’s time to improve your credit score with a credit card or loan, you’ll want to do some research before you get started. Don’t just choose the first loan option or credit card that comes your way. Look for choices that come with good interest rates, rewards, and even support for the local community. How can you make the right choice? Bundlefi can help. Use our site to compare loans and credit card options today. Bundlefi is here to help you get the most from your finances.