It does n’t take a fat bank account to secure your financial status. All you need is a shrewd mind for money and a good credit score to boot. Don’t worry if you’ve got a lousy score right now. Here’s a list of effective habits to help you recover from bad credit.
1. Pay your bills on time. You can easily set up an automatic payment system for your credit card bills and utility bills. If possible, don’t just stick to the minimum payment. If you’ve missed some payments before, make up for it and stay ahead.
2. Avoid the credit limit. Don’t max out just because you’re allowed to max out. Keep your balances low. In fact, most financial experts suggest that you should use your credit at no more than 30% of your total credit card limit.
3. Experiment with a long credit history. Credit scores are also based on longevity or your experience in finances. The longer history you have of paying your bills on time, the better your credit risk will be.
4. Apply ONLY for credit cards that you need. At the very least, have three: one for shopping, one for emergencies, one for utility bills.
5. Think ahead. Save for the future. Regardless of how secure you are with your job or how stable your financial expenses are, you definitely need to be financially prepared for emergencies. Separate a savings account with an emergency savings account; that way you’ll have pools of accounts to choose from.
Ready to start saving yet?
Ready to start saving yet?
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