Your twenties is a time to start planning long term. If you want a mortgage after finishing school or college, you will need to start minding your credit score. Enlightening yourself on using credit efficiently will go a long way in a stable future. The following are ways on how to grow your credit score and keep them in respectable condition.
1. Build credit in every way possible
Credit shows the lenders if they can trust you with their finances. Whether you are going for a car loan, mortgage loan, or personal loans, a good repayment history can improve on your credit score and allow you earn trust from lenders.
It might seem like a tedious task to initiate credit in your younger years, but all you got to do to start is have a credit card. You can easily apply for a secured credit card which will allow lenders to witness your payment patterns.
Another way is to apply for our guaranteed approval auto loans. Financing a car accelerates your credit score quickly. Your auto payment history will be reported monthly which will boost your credit score rapidly.
2. Reminding yourself of due payments is always a good idea
Life is extremely busy and at times, you may lose track of the bills that are due.
However, registering on Autopay or using calendars on your smartphones/devices to set up a payment reminder can easily ring a bell when needed. Paying off how much and when you need to can easily keep your credit and finances in check.
A more convenient way would be to schedule an automatic payment online. This will save you time, and more importantly, prevent any late payments which can be harmful to your credit score.
3. Avoid store credit cards
Getting that 20% off on groceries with a credit card can be tempting but it not always as transparent as it seems.
Usually, store credit cards involve high interest rates which can be hard to deal with over a long period of time. Basically, all you end up doing is paying more for those “discounted products” when you might not even need all of them.
4. Cash advance isn’t smart
Withdrawing cash from your credit card can be convenient but should be avoided whenever you can. Such transactions involve a hYgh fee. You are borrowing money from your bank and that requires you to repay that same amount back in a certain time limit. Failure to do so will result in extra fees from interest rates.
Moreover, the interest rates on cash advances are significantly higher as they start mounting the moment you withdraw money.
5. Register concerns with all credit bureaus
Credit bureaus such as Equifax Canada and TransUnion Canada all monitor your credit. Both issue their individual reports that you are allowed to receive on an annual basis. However, the reports from each bureau can be slightly different.
If you come across any queries with your credit like identity theft, raise it to all credit bureaus so it can be updated respectively.
These are some credit hacks that you should start engaging with as early in life as possible. However, for an in-depth analysis or more information on credit building, click here or call 1-855-550-5565 today!