If you remember the good old days, when creditworthiness was only a matter of trust and “good faith” and a simple handshake. Those are days are completely gone and the “good faith” method has been replaced along with the handshake by as we know today as FICO.
Our FICO is determined by a couple of factors and depending on which score you get, which can range from 300 to 850, you either get marked as a risk or not. Basically, it can have a positive or a negative impact for your future loans.
I can’t emphasize how much your score needs to be taken care of, because it can not only buy your dream house but it can also determine whether you can rent an apartment or if you get that job you’ve always wanted. Yes, credit scores can now determine job posts.
However, we know how hard it is to keep a good credit score. Life happens and all of a sudden, from an uncontrollable situation you’ve fell in a big debt pitfall from which you doubt you will ever get out. Don’t worry, because there is always a way to get out of debt and bring yourself back to the top scores.
Many children stories tell about champions that all they needed was human spirit. That’s exactly what you need to have, the motivation and strength to do all the things I’m going to list below and you are guaranteed to make the best credit decisions.
As we’ve seen, debt and bad credit can completely ruin your morale and make you feel hopeless. Happily for everyone, there are some decisions which you can make in order to bring your credit score to the top and keep it there.
1. Reduce your monthly expenses – Try to cut down as much spending as you can so you can completely focus on paying off all of your debt before the deadline.
2. You make the rules – Some banks as well as financing companies will allow you to set your own deadlines and lower your minimum amount due. Although not many companies, the ones that do provide you with this benefit are great!
3. Communicate – Tell them what you can’t pay and they will tell you ways through which to solve this issue, For example, by reducing interests rates.
4. Another loan – This can be seen as a tactic, you can take a loan so you can pay the smaller bills and keep the big ones for when you get your salary.
These are the four golden rules that if you follow, you will have a good credit score and you will keep it that way until this FICO system will change again.