If you've been a "cold cash patriot" for a long time, talking about your credit score could be a bad idea. Why talk about your credit score if you can afford to buy a house with thick stacks of $100 bills? It's a waste of time, and you're not interested in credit scores or anything else about them.
If you have a lot of cash to spend, that is. But what if there comes a time when you have no money at all? Do you still think it's bad to talk about your credit score? Think again: maybe now is the time to talk about credit scores "at least six feet underground" instead of "an inch below the water."
Don't forget that your credit score could be your "best friend" or your "worst enemy." The better your credit score, the more likely it is that you will be able to get loans and credit cards with lower interest rates and easier payment terms. The longer you save, the more money you can save if the interest rate is low.
And that's a good thing.
On the other hand, having a low credit score will cause you trouble and make it hard for you to get a loan or credit card. If you do get a loan or credit card, the interest rate will be higher. So, having a low credit score will really make your head hurt and force you to dig deep into your pockets.
Now, you should think about how to raise your low credit score. You have a few choices, but you only need to take three steps to improve your credit score. How do you plan to do it? Check out the following and make sure you can do what they say.
- Always pay your bills when they're due. Don't forget how important it is to pay bills on time. Keep in mind that paying your bills on time is one of the most important things that can affect your credit score. Whenever possible, pay your bills before they are due. If you have trouble making payments on time, you could also look into making payments automatically.
- Use credits as little as possible. If you use credit cards, don't spend more than your credit limit and try to keep your balances low, say, 25 percent below your credit limit. It will keep you from racking up huge debts by buying things you don't need on credit.
- Check your credit report to see if there are any mistakes. Keep in mind that errors in credit reports are very common, thus it is recommended that you examine your credit reports at least twice a year. By doing this, you will be able to find any mistakes and fix them before they hurt your credit score too much. The three largest credit reporting agencies in the United States can give you a copy of your credit report.
If you want to borrow money in the future, your credit score is very important. So, if your credit score is low, don't waste any time and follow the three steps above to raise it. Make your credit score a strength instead of a weakness.
