Credit is a handy tool payment to no longer fear the unexpected and facilitate expenses. It should however make sure you keep a good credit rating and reduce your debt.
From the first time you get your credit, it starts to build. Rigor is required because your credit score will follow you all your life.
Bad habits that plague a credit
- Make checks NSF.
- Place an empty envelope at the ATM.
- Have significant delays in payments.
- Borrow from several financial institutions or accumulate a lot of personal debt.
1) If you are a student, you open a savings account yield studies. In addition to offering an attractive interest rate, you will deal with the unexpected and demonstrate sound financial management.
2) Buy credit only once you’ve assessed your situation, your needs and repayment capacity.
3) Avoid impulse and unnecessary purchases. Always ask yourself if you would purchase this amount with cash.
4) Calculate the total amount of your purchase including the cost of credit.
5) Pay off your credit card each month and pay your other bills on time.
6) Be careful and avoid at all costs going into debt with your credit card. If this is the case, it would be preferable to borrow to pay the balance. In addition to demonstrating that you take your finances and your credit seriously, you will pay less interest with a personal loan. A credit card should be used when unforeseen, reservations and online shopping, especially when you know that you can repay all in the following days. This is one of the important ways to build credit.
7) Do not check if you do not have the necessary funds at the time of issue. One NSF tarnished credit file.
8) Before you commit, make sure you read and understand the credit contract and know the interest rates.
9) Limit the number of credit cards, especially those businesses that have an interest rate much higher than the boards of financial institutions. It will then be easier to keep control of your finances.
10) Keep track of all your purchases. Keep your receipts and compare them with your monthly statements.
11) Make payments larger than the minimum required and always a regular basis. Irregularities payments tarnish a credit.
12) If you cannot make the minimum monthly payments on your account, notify your creditors immediately. You can then make arrangements to suit all. Never let your creditors without news.
13) Be aware of your borrowing capacity. Never borrow more than 35% of your annual income.
Following these ways to build credit will be easier to build a good credit history instead of re-establish credit.