9 Things Mums With Good Credit Always Do
While having good credit is essential, maintaining it is equally important. Having knowledge on how credit works, empowers you and prevents you from unknowingly sabotaging your credit score.
Here are some things mums with good credit do.
1. They pay their Bills On Time.
People with good credit have it for a reason – they pay their bills on time. Its is important to make sure your medical bills, student loans (JAB now KUCCPS) and short loans are paid on time. Banks look at how late you were in making payments, the amount of payments, and how frequent/recent the late payments were made in deciding your legibility in acquiring a loan.
2. They keep their Credit Card balances in Check
Mums who have shopping spree tendencies (especially on all those adorable baby items online) curb this by saving to cart but not actually buying. When they come back there a few days later they often realize that they really didn’t need those additional items. Credit Card balances should be kept under 30% of your total credit card limit. Aim for lower if your budget allows it.
3. They keep Bank Accounts Open
Mums with good credit have dormant bank accounts that have been open for a long time. To avoid deactivation of the account and cancellation of the card, try keeping the accounts open. So long as there is no annual charges on the card, keep it open and pay some bills from the card. For example, if you have expected monthly bills such as Netflix, your Pay TV provider and electricity, consider using some of these accounts to pay for the small bills. Try keeping some money you earn from side gigs in old accounts and pay bills via these accounts. This enhances your score even if you are not actively using the accounts.
4. They don’t co-sign loans to anyone
While co-signing on social media messages is in the in-thing, mums with good credit are careful not to bring that into their real life. It’s tempting to help out a friend or a relative when they need a loan – make sure you are aware of the risks. Co-signing a loan automatically means you are putting your credit history on the line. If you co-sign for a car loan you are just as responsible to make the payments as the person you cosigned for.
5. They don’t cease using Credit Cards
It is advisable to use your credit cards for small purchases each month and pay them in full to keep the cards active. If you are a shopaholic, cutting up your credit cards is not the solution. Try having a consistent auto payment bill on the card to show stability, steadiness and reliance. They check their spending Mummy
Budgeting Mantra: If you can’t pay for it immediately, try saving for it!
6. They are not in a rush to pay off their loans
It smells panicky and says you might be late to pay the next time you are granted a loan. A person with good credit knows various credit types and planned installment loans will help increase their eligibility to acquire loans.
7. They ask for leniency.
If you are a first time offender, try asking for leniency. Explain why you missed your payments and if there is a way to navigate the situation. The bank might have a solution. We lack most thing in life because we don’t ask.
Ask; for savings advice, investment advice and favorable banking options that are suitable for you.
8. They don’t owe money on a lot of cards
Exhausting all your cards and having them debt ridden will make you have bad credit. You know what they say : don’t rob Peter to Pay Paul! This kind of debt is overwhelming to say the least.
9. They are responsible in other areas of their lives
Good credit does not necessarily equate to being responsible and vice versa. However, people with good credit generally live responsibly and manage their risks accordingly. Becoming a parent nudges even the least responsible to become much more responsible.
If you find yourself looking for funds to make ends meet every month but still want to live a lifestyle above your budget this is probably the time to manage your life more responsibly if you want to attain a good credit score. This list is not all conclusive but more often than not this is what it takes to get that good credit score.
If you are struggling with poor credit, start implementing some of the things listed above. Before you know it your credit score will have improved. There is that satisfying feeling you get when you receive a notification that your credit score has improved, trust me, you will want it to keep happening!
Aren’t you ready to improve that credit score? Book an appointment with a financial advisor here.
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