Improving Your Credit Score In 2018

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The new year always comes with a fresh set of challenges which promise to make us stressed, fresh Venus to work hard and make us re-evaluate what’s important in our lives.

One of the main things that many of us want to sort out in the new year is our finances. After the festive period you may come back and find that your finances are not in the state you wish they were, and it will also mean that you might have bad credit.

You credit score measures how likely you are to be accepted for large loans such as mortgages, car loans and other things. It is essentially used as a way to assess people and work out whether they are worth taking the risk on. But if you have a bad credit score, you will struggle getting anything apart from bad credit loans.

Watch your credit card

Credit cards are convenient for most of us and are a much easier way to pay at the till than rifling through your pride looking for change. The issue with credit cards is that they are TOO convenient, and so many of us end up spending money without even realising it because we can’t see that cash going out of our pockets. To improve your credit score and save money, keep an eye on your transactions.   

Get rid of credit card balances

The simple way to get rid of that credit card problem is to eliminate the balances. If you have multiple credit cards with small amounts in them, try and reduce them all down to one credit card. This will work in your favour because people will see you credit card and not a string of credit cards which you aren’t even really using.

Leave your old debt on the report

Although you might think that in order to be successful with your credit score you need nothing bad on there, taking off things like your car payment can actually go against you. The whole point of your credit score is to see how you deal with paying credit, therefore having examples of where you have paid off a debt successfully can work in your favour.

Pay on time

Your number one rule in life should be to always pay everything on time. It doesn’t matter what it is, whether it be your phone bill, your neighbour or your mortgage, paying on time should be a habit you pick up and do automatically without the need to think about it. 

Don’t take a risk

The best way to improve your credit score is to stay in a level of credit where you are comfortable. Don’t take a risk if you think it could scupper your chances of having a great credit score, it’s just not worth it. Always check your budgets throughout the week and if you find that you have extra income, put it into a savings account rather than spend it on things you don’t need.

Aaron is a guest author at Keywords + Jargon.

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