Whether we like to admit it or not, credit scores can have a profound effect on what we can purchase and how much we pay for certain items. They’re a record of your purchasing behavior, similarly to how driving records give insurance companies a glimpse of how you are behind the wheel.
Bad credit scores can have lenders thinking twice about approving your loan application, and if they decide to grant you one, it’s usually done at the expense of higher interest rates! Credit scores give lenders a peek into years of your past purchasing behavior, and a poor score can make it difficult to finance a home, car and anything else that requires credit. However, there are certain things you can do to improve your score if it’s too low. Let’s go over them.
Take Care of Credit Card Balances
Having small or no balances on your credit card can help boost your credit score. One factor that can affect your credit score is how many cards you have with balances. This is why charging $40 on one card and $50 on another can hurt your score. The solution? Pay off all small balances and get one card that you can use for everything else. This way, you’re not polluting your score with multiple balances.
Your Old Debt Can Actually Help You
Once bad credit is taken care of, the first thing many people want to do is remove it from their credit report. Yes, old debt may look bad on the surface, but after about seven years, it’ll gradually be removed. Not only that, old debt shouldn’t be removed from your report because it shows how committed you were to pay off those balances, no matter how long it took you. A lender may notice this and determine that you’ll be on top of your repayment plan.
Pay Everything on Time
It goes without saying that all bills, not just debt, should absolutely be paid on time. Even better if you pay them off ahead of when they’re due. Yes, it can be tough keeping up with how much you’re spending on your debt, but with our Internet banking service, you can schedule your monthly payments accordingly so you never fall behind. Just set a day of the month when a bill will be due, how much the payment will total and you’re set!
Making Your Finances Easier
Finances can be a real pain to deal with, especially if you’re falling behind on your bills, are having trouble keeping track of how much you owe or where your money is going. That’s why we’re here. Our credit union in Brownsville has multiple services that are each aimed and making your financial situation easier to deal with. If you’re looking for services that can make your life a little bit easier and less troubling, then contact us today. We want nothing more than for you to be content with your finances!