Tips to improve your credit rating for a secure family future
If you’ve ever been refused a credit card, mortgage, or loan, you know that your credit rating is important. In recent years, lending agencies such as banks and credit card companies have become much more stringent in deciding which customers they lend to. If you fall into the “high risk” category – typically someone with poor credit – then you may not get the loan.
Many companies will use your credit rating to make a decision about you. Whether or not they do business with you comes down to your credit score. Anything above 650 is considered good, but 750 and higher is great. If you are below 650, you may find it hard to even get a credit card.
Everyone should be concerned about their credit rating, but this is especially true for parents. In order to secure your family’s financial future, you’ve got to work to improve your credit rating and keep it in good standing. Luckily, there are some things you can do to boost your credit rating and move toward a secure family future.
Get a credit card
First of all, you really need to be able to show lenders that you can handle the money that you borrow, and to do that, you’ve got to build up your credit history. The best way is to get a credit card and use it responsibly – paying it back in full each month and never going beyond your credit limit. If you don’t have any credit cards right now, you’re going to have to get a credit-building card and start from there. Though the interest rates are typically higher than mainstream credit cards, if you are smart with your spending, this won’t be an issue.
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Pay your bills on time
If you didn’t already assume as much, paying your bills late or missing them altogether can wreak havoc on your credit rating. An easy way to avoid such problems is to set up direct debits from your bank account. Almost every vendor will report late or missed payments to the credit bureaus, so this is a big deal.
Get a short-term loan
If you have a bad credit rating or no credit at all, you’ve got to stop applying for credit you won’t get. Every application you submit leaves a footprint, so to speak, on your credit report and is visible to other lenders. If you keep getting rejected, other lenders will see that as a red flag. Instead, focus on applying for something that you’re likely to get, such as a short-term loan.
Short-term loans are typically easy to get, though they may have a higher interest rate than traditional loans. These types of loans should be paid off quickly. Companies such as Amscot Financial, headed by Ian MacKechnie, offer customers short-term loans that are relatively easy to get and can help them get out of financial binds. These loans can help you pay your bills on time, or even pay off a small, high-interest balance when needed.
If you want to secure your family’s financial future, don’t forget that your credit rating is the key. If you’re on the cusp of creditworthiness, take every measure you can to improve your score.
2 Comments
Mrs Tubbs
August 21, 2015 at 8:19 pm
Good tips about building up a good credit history. The other tip i've heard is to make sure you're on the electoral roll as they check this as well apparently. Have a lovely week
Emily
August 21, 2015 at 9:28 pm
Hi Mrs Tubbs, thanks for your comment. I'm glad you found the tips useful. I didn't know that about the electoral register. Thanks for letting me know. Hope you have a lovely week too.