Having a good score on our credit record represents one of the most important missions. It is about maintaining a balance between our income and expenses so that we are responsible and reliable people before any bank or lender. Here are 10 fundamental rules that you must follow to reach the best score on your credit:
- Create a budget and stick with it: make a realistic estimate that allows you to cover your monthly expenses and make smart use of your credit.
- Handle your credit cards wisely: try not to drag the balance from one month to another. Interest on arrears will decrease your score considerably.
- Always pay more of the minimum payment to your credit cards: if it is not possible to pay the full balance, always pay a little more than the minimum payment, as much as you can. Remember that the longer you owe, the more interest you will be charged.
- Apply to new credit, even to new cards, smartly: every time a lender checks your credit record, the score is affected.
- Keep a balance between what you owe and your credit capacity: it refers to the credit radius, it is ideal to have an availability of ¾ or ⅔ of your credit.
- Do not cancel a credit card once you have paid off your debt: first evaluate the consequences that this would have on your record and what would be the new ratio between what you owe and your maximum debt capacity.
- Implement security measures against identity theft: Destroy documents that contain personal information and keep your devices virus-free.
- If you have a financial problem, do not avoid it: if you can not pay your debts, immediately contact your lender to develop a payment plan that suits your abilities and does not negatively impact your credit.
- Pay your bills on time: a consistent history of crediting your debts will increase your credit score and keep you in a good position.
- Check your score regularly: perhaps you have the habit of checking your credit once a year or only when you are applying for a new loan, however, it is ideal to review it more often as this will help you monitor your position and plan personal projects in advance.
Staying away from these rules is essential for a more organized and easy financial life, especially if you plan to buy the house of your dreams in the short or medium term. You have more questions? Comment below and we'll help you!