Not everyone is financially savvy, but everyone should know some basic tips about financial basics, such as budgeting, credit scores, and investment options. If you are among the many who feel the need to improve your financial situation, you need to start by learning some basic terminology that will help you to be financially sound.
Before giving you a home loan or a line of credit, a financial company will research your credit history to determine your credit-worthiness, in order to minimize the risk of default. Because of this, your credit score is your most valuable asset as a consumer. Here is how you can improve it:
Pay utility bills on time
This will help you to improve your score. A good score that can get you a loan is something above 550. If your score is above 650 then you’re in excellent financial health. You can bargain with your lender on the interest rate. A score below 550 will need improvement and this can help to open the credit world to you.
Repairing your credit report is like hanging wallpaper; you either do it yourself or call for a professional. If you are ready to do a bit of hard work to save your bucks from being spent on a professional, your initial move should be applying for credit reports. Once you have your report with you, review every detail of it and highlight any errors. It is not uncommon for a credit report to contain errors regarding billing, loans, etc. But if you don’t correct the info, then nobody will. Contact the credit reporting agency to discuss any disputes. Opt out of applying for further loans or credit cards. This will ensure that you’re not looking for any money.
Dispute errors and entries
Since the volume of credit reports are piled up in the offices of the credit report agencies, errors are likely to occur. So go online and check your report with all the three top agencies like Equifax, Experian and TransUnion. FICO credit score is very popular in America.
Get a secured credit card
This can help you to improve your credit score. To get a secured credit card you’ll need to save some money and make a deposit with your lender. You can avail 80% of your deposit as credit. Once you pay monthly for your card it’ll help you to improve your score.
With a little bit of hard work and ingenuity, you’ll have a better credit score in no time.